XRP News Today: Ripple Faces Headwinds Amid Legal Battles and Appeals Plans

Bob Mason
Published: May 10, 2024, 01:41 GMT+00:00

Key Points:

  • XRP advanced by 0.87% on Thursday (May 9), ending the session at $0.5212.
  • Concerns about the SEC vs. Ripple case limited the upside, as the broader crypto market advanced by 2.82%.
  • On Friday (May 10), the ongoing SEC vs. Ripple case and news updates from other SEC-crypto cases need consideration.
XRP News Today

In this article:

The Thursday Overview

On Thursday (May 9), XRP advanced by 0.87%. Partially reversing a 1.58% loss from Wednesday (May 8), XRP ended the session at $0.5212.

SEC vs. Ripple: Court Rulings, an SEC Appeal, and the Presidential Election

There were no SEC vs. Ripple case case-related updates for investors to consider on Thursday (May 9).

After the SEC filing on Wednesday (May 8), investors must now wait for the parties and any third parties to complete the procedural court requirements. From there, the court will decide the penalty Ripple must pay for breaching Section 5 of the 1933 Securities Act.

A punitive penalty and an injunction may impact Ripple’s plans to expand in the US and XRP price trends.

However, SEC plans to appeal the Programmatic Sales of XRP ruling remain an XRP headwind. In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.

The SEC attempted to appeal against the ruling with a motion for interlocutory appeal. However, Judge Torres rejected the motion in October, forcing the SEC to wait until the end of the case before filing any appeals.

Recent SEC vs. crypto court rulings fueled uncertainty about the likely success of an SEC appeal against the Programmatic Sales ruling.

In December 2023, Judge Rakoff ruled that Terraform Labs and Do Kwon breached US securities laws for failing to register TerraUSD and Luna as securities. Judge Rakoff made the crypto headlines in 2023, targeting the Programmatic Sales of XRP ruling, calling the court ruling a judicial error.

More recently, Judge Failla denied, in large part, the Coinbase (COIN) Motion to Dismiss (MTD). Judge Failla surmised,

“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 outcome of the SEC v Coinbase case could significantly influence the crypto regulatory landscape.

SEC vs. Coinbase: The Interlocutory Appeal

In April 2024, Coinbase filed a motion for interlocutory appeal against Judge Failla’s ruling on the Coinbase Motion to Dismiss. The motion questions whether an investment contract requires something contractual.

A court decision on the motion could come at any time. Significantly, a Coinbase victory against the SEC could end SEC plans to appeal against the Programmatic Sales of XRP ruling.

The SEC may also have to reconsider its legal maneuvers against Robinhood (HOOD), Kraken, and others in the crypto space.

Ultimately, the outcome of the ongoing cases could dictate the SEC’s influence on the US crypto market. Crypto victories would likely boost buyer demand for XRP and the broader market.

XRP Price Action

Weekly Chart sends bearish price signals.
XRPUSD 100524 Weekly Chart

Daily Chart

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

An XRP move through the 50-day EMA could give the bulls a run at the 200-day EMA and the $0.5739 resistance level. A break above the $0.5739 resistance level may signal a return to the $0.60 handle.

SEC vs. crypto case-related updates and chatter need consideration.

Conversely, an XRP break below the trend lines could give the bears a look at sub-$0.50 levels.

The 14-day RSI reading, 45.18, suggests an XRP drop below the $0.50 handle before entering oversold territory.

XRP Daily Chart affirms bearish price signals.
XRPUSD 100524 Daily Chart

4-Hourly Chart

On the 4-hourly, XRP hovered below the 50-day and 200-day EMAs. The EMAs affirmed the bearish price signals.

A break above the 50-day EMA would support an XRP move to the $0.5361 resistance level. A breakout from the $0.5361 resistance level would bring the 200-day EMA into play.

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

The 14-day RSI reading, 44.50, indicates an XRP break below the $0.50 handle before entering oversold territory.

XRP 4-Hourly Chart reaffirms the bearish price signals.
XRPUSD 100524 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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