XRP News Today: Legal Battles and Market Dynamics Drive XRP Volatility

Bob Mason
Published: Apr 21, 2024, 04:50 GMT+00:00

Key Points:

  • XRP rallied 5.17% on Saturday, closing the session at $0.5291.
  • Easing fears of a more widespread conflict in the Middle East fueled buyer demand for XRP. The Bitcoin Halving contributed to broad-based crypto market gains.
  • On Sunday, investor focus will likely turn to the SEC vs. Ripple case and the looming opposition brief filing.
XRP News Today

In this article:

The Saturday Overview

XRP rallied 5.17% on Saturday. Following a 0.12% gain on Friday, XRP closed the session at $0.5291.

Easing Fear of a Widespread Middle East Conflict and the Bitcoin Halving

Investors reacted to news updates on the Middle East, with Iran downplaying the suspected Israeli attack on Friday.

However, investor sentiment toward the Bitcoin Halving also contributed to the gains. Bitcoin (BTC) advanced by 1.94% on Saturday, ending the session at $65,162. The BTC return to the $65,000 handle fueled buyer demand for XRP and the broader crypto market.

There were no SEC v Ripple case-related updates for investors to consider. Nevertheless, the SEC vs. Ripple case and SEC plans to appeal against the Programmatic Sales of XRP ruling remained XRP headwinds.

SEC vs. Ripple: The Opposition Brief and SEC Plans to Appeal

On Monday, April 24, Ripple must file its opposition brief. The opposition brief enables Ripple to contest SEC claims that Ripple continued breaching US securities laws after the complaint.

The opposition brief pertains to the court ruling that Ripple breached Section 5 of the US Securities Act by not registering XRP as a security in sales to institutional investors.

Investors will not have access to the opposition brief filing. However, Ripple must file a redacted version of the opposition brief by Wednesday, April 24. The redacted version will warrant investor attention. Sound arguments against SEC claims from the opening brief could raise investor hopes for a modest penalty for breaching securities laws.

The SEC must file its reply brief by May 6 and a redacted version by May 8. After the SEC filing, Judge Analisa Torres will decide the penalty Ripple must pay. Judge Torres could deliver the court ruling during the summer.

After the court ruling, investors expect the SEC to appeal against the Programmatic Sales of XRP ruling. In June 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test. Recent court rulings on crypto cases will likely incentivize the SEC to file an appeal.

In December, Judge Rakoff ruled Terraform Labs breached US securities laws for failing to register Luna and TerraUSD.

Moreover, in March, Judge Failla denied, in large part, the Coinbase (COIN) Motion to Dismiss (MTD). Significantly, the court did not grant the Coinbase motion to dismiss charges for operating as an unregistered securities exchange.

On April 12, Coinbase filed a brief requesting permission to seek an interlocutory appeal. The outcome of the Coinbase case will likely be significant for XRP and the crypto market. A Coinbase win could force the SEC to end its reign of regulation through enforcement and possible end plans to appeal the Programmatic Sales of XRP ruling.

XRP Price Action

Weekly Chart sends bearish price signals.
XRPUSD 210424 Weekly Chart

Daily Chart

XRP remained below the 50-day and 200-day EMAs, affirming the bearish price signals. The 50-day EMA crossed through the 200-day EMA, another sell signal.

An XRP break above the top trend line would support a move to the $0.5739 resistance level and the 50-day and 200-day EMAs. Selling pressure could intensify at the $0.5739 resistance level. The 50-day and 200-day EMAs are confluent with the resistance level.

SEC vs. crypto case-related chatter warrants investor attention.

Conversely, a drop below the bottom trend line could bring the $0.48 handle into play.

The 14-day RSI reading, 42.60, indicates an XRP fall to the $0.48 handle before entering oversold territory.

XRP Daily Chart affirms bearish price signals.
XRPUSD 210424 Daily Chart

4-Hourly Chart

On the 4-hourly, XRP hovered above the 50-day EMA while remaining below the 200-day EMA. The EMAs sent bullish near-term but bearish longer-term price signals.

An XRP break above the top trend line would support a move to the $0.5361 resistance level.

However, an XRP drop below the bottom trend line and the 50-day EMA could bring the $0.48 handle into play.

The 4-hourly RSI, with a reading of 60.34, suggests an XRP break above the $0.5361 resistance level before entering overbought territory.

XRP 4-Hourly Chart sends bullish near-term price signals.
XRPUSD 210424 4-Hourly Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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