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XRP News Today: Market Awaits Ripple Case Ruling as SEC Targets an Appeal

By:
Bob Mason
Published: May 16, 2024, 01:18 GMT+00:00

Key Points:

  • XRP rallied 3.63% on Wednesday (May 15), closing the session at $0.5189.
  • Investor jitters about the ongoing SEC vs. Ripple case took a back seat as the markets reacted to US inflation and retail sales figures.
  • On Thursday (May 16), the market focus will likely return to the ongoing SEC vs. crypto cases, with the markets awaiting court rulings.
XRP News Today

In this article:

The Wednesday Overview

On Wednesday (May 15), XRP rallied 3.63%. Reversing a 0.81% loss from Tuesday (May 14), XRP closed the session at $0.5189.

SEC vs. Ripple Case Leaves XRP Trailing the Broader Crypto Market

There were no SEC vs. Ripple case-related updates for investors to consider following the Ripple Motion to Seal. A court ruling on the Motion to Seal is unlikely to have a bearing on the penalty for breaching US securities laws. Notably, the SEC did not object to the Motion, suggesting the court would grant the request to seal sensitive and confidential material.

According to the court schedule, the SEC, Ripple, and any third parties must file letter briefs opposing the omnibus letter motions by May 20.

The parties must file redacted versions within 14 days of the court ruling on the omnibus letter motions. More significantly, the court will also begin deliberating on the penalty Ripple must pay for breaching US securities laws and whether an injunction is appropriate.

In March, the SEC presented its case for an almost $2 billion penalty and an injunction prohibiting Ripple from selling XRP to institutional investors. An injunction would affect Ripple’s expansion plans in the US following the Programmatic Sales of XRP ruling.

Prohibition of XRP sales to institutional investors could influence buyer demand for XRP. A successful SEC appeal against the Programmatic Sales ruling may also adversely impact XRP.

Investors expect the SEC to file an appeal against the Programmatic Sales of XRP ruling after the Ripple case. Uncertainty about the outcome of the Ripple case and likely appeal remain XRP headwinds.

On Wednesday (May 15), XRP trailed the broader market. The total crypto market cap surged 6.38% ($139.47 billion) to $2,326 billion as investors reacted to US retail sales numbers and the US CPI Report.

US CPI Report and Retail Sales Fuel Demand for Riskier Assets

The US annual inflation rate eased from 3.5% to 3.4% in April, with core inflation falling from 3.8% to 3.6%. US retail sales data signaled a softer inflation outlook, stalling in April.

The April numbers fueled investor bets on a September Fed rate cut, driving buyer demand for riskier assets.

XRP Price Action

Weekly Chart sends bearish price signals.
XRPUSD 160524 Weekly Chart

Daily Chart

XRP sat below the 50-day and 200-day EMAs, sending bearish price signals.

An XRP break above the 50-day EMA would support a move to the 200-day EMA. A breakout from the 200-day EMA could give the bulls a run at the $0.5739 resistance level.

US economic data, FOMC member commentary, and SEC vs. crypto case-related updates need consideration.

Conversely, a drop below the trend lines could signal an XRP fall below the $0.50 handle.

The 14-day RSI reading, 48.07, suggests an XRP fall below the $0.48 handle before entering oversold territory.

XRP Daily Chart affirms bearish price signals.
XRPUSD 160524 Daily Chart

4-Hourly Chart

On the 4-hourly, XRP sat 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 move through 200-day EMA would bring the $0.5361 resistance level into play.

However, a fall below the trend lines could give the bears a run at sub-$0.50 levels. Buying pressure could intensify at the bottom trend line. The 50-day EMA is confluent with the bottom trend line.

The 14-day RSI reading, 61.09, 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 160524 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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