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XRP News Today: Market Rebounds Amidst SEC vs. Ripple Case Updates

By:
Bob Mason
Published: Apr 11, 2024, 01:26 GMT+00:00

Key Points:

  • XRP advanced by 0.55% on Wednesday, closing the session at $0.6181.
  • XRP and the broader market rebounded as investors reacted to the US CPI Report.
  • Crypto-spot ETF-related chatter, SEC vs. crypto case-related updates, and SEC activity warrant investor attention.
XRP News Today

The Wednesday Overview

XRP advanced by 0.55% on Wednesday. Reversing a 0.11% loss from Tuesday, XRP ended the session at $0.6181. significantly, XRP fell below the $0.60 handle before ending the session in positive territory.

US Inflation Drives Buyer Demand for XRP

On Wednesday, investor angst over the possible impact of US inflation numbers on risk sentiment sent XRP to a session low of $0.5928.

However, XRP and the broader crypto market reacted positively to the hotter-than-expected inflation numbers. XRP reversed the pre-CPI Report losses, climbing to a session high of $0.6212 before easing below the $0.62 handle.

However, XRP trailed the broader crypto market, with the SEC v Ripple case a lingering headwind. The total crypto market cap increased by 1.50% on Wednesday, ending the session at $2,547 billion.

30-Minute chart and reaction to the US CPI Report.
XRPUSD 110424 30 Minute Chart

SEC vs. Ripple: Apprehension vs. Anticipation

There were no SEC v Ripple case-related updates to consider on Wednesday. Nevertheless, investors cautiously await the Ripple opposition brief filing. Ripple must file the opposition brief by April 22 and a redacted version by April 24.

The opposition brief could materially influence the size of the penalty for breaching Section 5 of the 1933 Securities Act. In July 2023, Judge Analisa Torres ruled Ripple failed to register XRP as a security in sales to institutional investors.

The crypto community will likely react to the penalty Ripple must pay for breaching US securities laws. However, an SEC appeal against the Programmatic Sales of XRP ruling will likely have more significant ramifications.

Notably, investors have priced in the XRP sales to institutional investors ruling. Investors have also considered the likelihood of the SEC appealing against the Programmatic Sales ruling. However, XRP price action does not reflect the possibility of the appellate courts overturning the Programmatic Sales ruling.

In July 2023, the crypto market responded to the two rulings. XRP surged to a July 2023 high of $0.9327. The immediate threat of the SEC appealing against the Programmatic Sales ruling sent XRP to an August 2023 low of $0.4367.

Contrasting to the apprehension over the SEC vs. Ripple case, anticipation of US lawmaker intervention has cushioned the downside.

Intervention and a redistribution of regulatory oversight responsibilities could reignite bets on an XRP-spot ETF market. An XRP-spot ETF market would boost XRP and the broader crypto market. However, US lawmakers and possibly the US courts must decide whether XRP and other altcoins are commodities or securities before the crypto-spot ETF market can freely evolve.

XRP Price Action

Weekly Chart sends bullish price signals.
XRPUSD 110424 Weekly Chart

Daily Chart

XRP hovered above the 50-day and 200-day EMAs, sending bullish price signals.

An XRP break above the April 9 high of $0.6424 would give the bulls a run at the $0.6609 resistance level.

SEC vs. crypto-related news, SEC activity, and US lawmakers warrant investor attention.

Conversely, a break below the 50-day EMA would give the bulls a run at the 200-day EMA and the $0.5740 support level.

The 14-day RSI reading, 52.61, suggests an XRP move to the $0.70 handle before entering overbought territory.

XRP Daily Chart affirms bullish price signals.
XRPUSD 110424 Daily Chart

4-Hourly Chart

On the 4-hourly, XRP remained above the 50-day and 200-day EMAs. The EMAs confirmed the bullish price trends.

An XRP return to the April 09 high of $0.6433 could support a move toward the $0.6609 resistance level.

However, an XRP break below the 200-day and 50-day EMAs would bring the $0.5739 support level into play.

The 4-hourly RSI, with a reading of 57.35, indicates an XRP break above the $0.6609 resistance level before entering overbought territory.

XRP Daily Chart reaffirms bullish price signals.
XRPUSD 110424 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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