Advertisement
Advertisement

XRP News Today: Legal Battles Drive Price Volatility – SEC vs. Ripple Lawsuit Update

By:
Bob Mason
Updated: Apr 10, 2024, 01:12 GMT+00:00

Key Points:

  • XRP declined by 0.11% on Tuesday, ending the session at $0.6147.
  • Uncertainty about the SEC vs. Ripple case left XRP in negative territory.
  • Crypto-spot ETF-related chatter, SEC vs. crypto case-related updates, and SEC activity warrant investor attention.
XRP News Today

In this article:

The Tuesday Overview

XRP declined by 0.11% on Tuesday, April 9. Partially reversing a 3.42% rally from Monday, XRP ended the session at $0.6147. Significantly, XRP revisited the $0.64 handle before hitting the reverse.

SEC vs. Ripple: Uncertainty Drives XRP Price Volatility

There was no SEC v Ripple case-related news for investors to consider. The lack of updates led investors to contemplate the case, and the SEC plans to appeal.

Current XRP price levels suggest the crypto market is confident that Ripple can avoid a punitive penalty. In July 2023, Judge Analisa Torres ruled Ripple breached Section 5 of the 1933 Securities Act for selling unregistered XRP to institutional investors.

While the penalty will draw significant attention, SEC plans to appeal the Programmatic Sales of XRP ruling remain the focal point. In July 2023, Judge Torres also ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.

A successful appeal against the Programmatic Sales ruling may have significant consequences for the US digital asset space. The recent court ruling in the SEC vs. Terraform Labs case has fueled uncertainty about the outcome of an appeal.

In December, Judge Jed Rakoff ruled that Terraform Labs and Do Kwon breached US securities laws for failing to register TerraUSD and Luna as securities. The ruling highlighted the complexities in applying Howey and US securities laws to cryptos. Moreover, Judge Rakoff also criticized the Programmatic Sales of XRP ruling, incentivizing the SEC to appeal.

After a series of losses, the momentum may have shifted toward the SEC. In March, the court denied, in large part, the Coinbase (COIN) Motion to Dismiss (MTD charges for operating as an unregistered securities exchange. In the court ruling, Judge Katherine Failla said,

“The court concludes that because the well-placed allegations of the Complaint plausibly support the SEC’s claim that Coinbase operated as an unregistered intermediary of securities, Defendants’ motion must be denied in large part.”

The high level of uncertainty and the significance of upcoming rulings will keep Ripple, XRP, and Coinbase in the spotlight.

Price action reflected the level of uncertainty. XRP gave up gains from earlier in the Tuesday session to end the day in negative territory.

XRP Price Action

Weekly Chart sends bullish price signals.
XRPUSD 100424 Weekly Chart

Daily Chart

XRP remained above the 50-day and 200-day EMAs, affirming the bullish price signals.

An XRP breakout from the $0.62 handle would support a move toward the $0.6609 resistance level. XRP must break down resistance at the Tuesday (April 9) high of $0.6433.

SEC activity and SEC vs. crypto-related updates warrant investor attention.

Conversely, a drop below the 50-day EMA could bring the 200-day EMA and the $0.5740 support level into play.

The 14-day RSI reading, 50.74, indicates an XRP return to the $0.70 handle before entering overbought territory.

XRP 4-Hourly Chart sends bullish price signals.
XRPUSD 100424 Daily Chart

4-Hourly Chart

On the 4-hourly, XRP sat above the 50-day and 200-day EMAs. The EMAs reaffirmed the bullish price signals.

An XRP break above the April 09 high of $0.6433 could bring the $0.6609 resistance level into play.

However, an XRP fall through the $0.60 handle could give the bears a run at the $0.5739 support level.

The 4-hourly RSI, with a reading of 54.89, suggests an XRP move through the $0.6609 resistance level before entering overbought territory.

XRP 4-Hourly Chart sends bullish price signals.
XRPUSD 100424 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.

Did you find this article useful?

Advertisement