XRP News Today: Ripple and SEC Continue Battle, Investor Focus Sharpens

Bob Mason
Updated: May 7, 2024, 01:33 GMT+00:00

Key Points:

  • XRP gained 1.85% on Monday (May 6), ending the session at $0.5403.
  • The SEC filed its non-public remedies reply brief and supporting exhibits, arguing for a punitive penalty.
  • On Tuesday (May 7), SEC vs. Ripple case-related news warrants investor attention following the Robinhood Wells Notice.
XRP News Today

In this article:

The Monday Overview

On Monday (May 6), XRP gained 1.85%. Following a 0.11% rise on Sunday (May 5), XRP closed the session at $0.5403.

SEC vs. Ripple: SEC Files Non-Public Remedies Reply Brief

SEC vs. Ripple case-related updates drew investor interest on Monday (May 6). Defense attorney James Filan shared the latest news, saying,

“The SEC has filed, under seal, its remedies reply brief & supporting exhibits. These documents are not yet public. Public, redacted versions will be filed by Wednesday, May 8, 2024. Other sealing-related filings will follow.”

According to the court schedule,

  • The SEC and Ripple will meet to agree on redactions to the reply brief and exhibits on Tuesday (May 7).
  • On Wednesday (May 8), the SEC must file its public, redacted version of the remedies reply brief and accompanying exhibits.
  • The SEC, Ripple, and third parties must file omnibus letter motions to seal all materials relating to the remedies-related briefing. Furthermore, all parties and third parties must file proposed redactions to the materials.
  • By May 20, the SEC, Ripple, and third parties must file opposition briefs to the omnibus letter motions to seal.
  • The parties and third parties must file public, redacted versions of all documents within 14 days of the rulings on the omnibus sealing motions.

As investors await the redacted version of the SEC reply brief, the SEC targeted another exchange.

Robinhood Receives Enforcement Notice

On Monday, Robinhood (HOOD) announced that Robinhood Crypto (RHC) received a Wells Notice from the SEC. The Wells Notice indicated that SEC staff will recommend the SEC to file an enforcement action.

Robinhood Chief Legal, Compliance, and Corporate Affairs Officer Dan Gallagher had this to say about the Wells Notice and likely enforcement action,

“After years of good faith attempts to work with the SEC for regulatory clarity including our well-known attempt to ‘come in and register,’ we are disappointed that the agency has decided to issue a Wells Notice related to our U.S. crypto business.”

Gallagher added,

“We firmly believe that the assets listed on our platform are not securities and we look forward to engaging with the SEC to make clear just how weak any case against Robinhood Crypto would be on both the facts and the law.”

Robinhood joined a growing list of US platforms that the SEC is taking action against over crypto trading.

Coinbase (COIN) CEO Brian Armstrong responded to a post from Vlad Tenev, the CEO and co-founder of the trading app Robinhood, saying,

“Welcome to the club – you’re in good company :). The courts will help get clarity – but the right solution longer term is we need to elect pro-crypto candidates. This is why Coinbase has supported Fairshake superpac, and”

The ongoing SEC cases against crypto firms could materially influence the U.S. crypto market. A Coinbase victory may end the SEC’s regulation through an enforcement approach that continues impacting the crypto market.

In April, Coinbase filed a Motion for interlocutory appeal over the ruling on the Coinbase Motion to Dismiss (MTD). Coinbase filed the Motion in response to the court denying the motion to dismiss charges for operating as an unregistered securities exchange.

XRP Price Action

Weekly Chart sends bullish longer-term price signals.
XRPUSD 070524 Weekly Chart

Daily Chart

XRP remained below the 50-day and 200-day EMAs, affirming the bearish price signals.

An XRP break above the 50-day EMA would support a move to the 200-day EMA and the $0.5739 resistance level. A breakout from the $0.5739 resistance level could bring the $0.60 handle into play.

SEC vs. crypto case-related news needs investor consideration.

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

The 14-day RSI reading, 51.19, indicates an XRP return to the $0.60 handle before entering overbought territory.

XRP Daily Chart sends bearish price signals.
XRPUSD 070524 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 confirmed the bullish near-term but bearish longer-term price signals.

An XRP breakout from the 200-day EMA could give the bulls a run at the $0.5739 resistance level.

However, an XRP fall through the $0.5361 support level could signal a drop to the 50-day EMA.

The 14-day RSI reading, 56.00, suggests an XRP return to the $0.60 handle before entering overbought territory.

XRP 4-Hourly Chart sends bullish near-term price signals.
XRPUSD 070524 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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