XRP News Today: Ripple Faces SEC Heat, Awaits Crucial Court Filings and Rulings

Bob Mason
Updated: May 15, 2024, 01:20 GMT+00:00

Key Points:

  • XRP declined by 0.81% on Tuesday (May 14), ending the session at $0.5007.
  • SEC vs. Ripple case-related activity drew investor interest, with SEC plans to appeal against the Programmatic Sales of XRP ruling a focal point.
  • On Wednesday (May 15), the US CPI Report, the Fed, SEC activity, and SEC vs. crypto case-related news need consideration.
XRP News Today

In this article:

The Tuesday Overview

On Tuesday (May 14), XRP declined by 0.81%. Partially reversing a 1.10% gain from Monday (May 13), XRP ended the session at $0.5007.

SEC vs. Ripple: Court Filings and SEC Plans to Appeal

On Tuesday (May 14), SEC vs. Ripple case-related updates warranted investor attention.

Defense attorney James Filan shared the latest court filings. Ripple filed a Motion to Seal a selection of documents relating to the SEC Motion for Judgment and Remedies.

Ripple requested the sealing of sensitive and confidential material, including audited financial statements and documents outlining existing business relationships. The filing stated that the audited financial statements and other related documents are nonpublic, supporting the Motion to Seal.

Ripple Chief Financial Officer Jonathan Bilich filed a declaration supporting the Ripple Motion to Seal, stating,

“I attest that the information Ripple seeks to redact is highly sensitive and confidential business and proprietary information. Its disclosure to the public would be detrimental to Ripple’s business relationships with customers and other counterparties and harm Ripple’s competitive standing in the market place.”

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 then file redacted versions of all documents within 14 days of the court’s ruling on the omnibus sealing motions.

With the SEC and Ripple progressing through the final stages of the case, speculation about the likely penalty for Ripple breaching US securities laws will likely intensify.

The Appeal

A court ruling siding with the SEC’s arguments for an almost $2 billion penalty and an injunction prohibiting XRP sales to institutional investors could impact buyer demand for XRP. Moreover, a punitive penalty would incentivize the SEC to appeal against the Programmatic Sales of XRP ruling.

In October 2023, the SEC expedited the SEC vs. Ripple case by dropping the charges against founder Chris Larsen and CEO Brad Garlinghouse.

The SEC dropped the charges after the court rejected the SEC motion for interlocutory appeal. The court ruling on the motion for interlocutory appeal meant that the SEC must wait until the end of the case to appeal against the Programmatic Sales of XRP ruling.

SEC plans to appeal against the ruling remains an XRP headwind.

XRP Price Action

Weekly Chart sends bearish price signals.
XRPUSD 150524 Weekly Chart

Daily Chart

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

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

SEC vs. Ripple case-related updates, SEC activity, and the US economic calendar need consideration. The focal point remains on the SEC vs. Ripple case. However, hotter-than-expected US inflation numbers could reduce bets on a September Fed rate cut and impact demand for riskier assets.

Conversely, an XRP break below the $0.4950 handle could signal a possible fall through the $0.48 handle.

The 14-day RSI reading, 40.02, indicates an XRP drop below the $0.48 handle before entering oversold territory.

XRP Daily Chart affirms bearish price signals.
XRPUSD 150524 Daily Chart

4-Hourly Chart

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

A break above the trend lines and 50-day EMA would support a move toward the 200-day EMA and the $0.5361 resistance level. Selling pressure could intensify at the bottom trend line. The 50-day EMA is confluent with the bottom trend line.

However, an XRP fall through the $0.4950 handle could give the bears a run at sub-$0.48 level.

The 14-day RSI reading, 38.72, suggests an XRP fall to the $0.48 handle before entering oversold territory.

XRP 4-Hourly Chart reaffirms the bearish price signals.
XRPUSD 150524 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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