XRP News Today: Ripple Fires Back in SEC Lawsuit with Reply Brief

Bob Mason
Published: May 3, 2024, 01:20 GMT+00:00

Key Points:

  • XRP advanced by 0.31% on Thursday (May 2), ending the session at $0.5188.
  • Investor caution before the SEC reply brief left XRP trailing the broader crypto market.
  • On Friday (May 3), investors should monitor SEC vs. Ripple case-related news.
XRP News Today

In this article:

The Thursday Overview

On Thursday (May 2), XRP advanced by 0.31%. Following a 3.32% rally on Wednesday (May 1), XRP ended the session at $0.5188.

SEC vs. Ripple: Ripple Files Reply Brief to Its Motion to Strike

On Thursday, SEC vs. Ripple case-related updates warranted investor attention. Ripple filed its reply brief to contest the SEC’s opposition brief.

On April 22, Ripple filed a Motion to Strike expert testimony and accompanying exhibits from the SEC’s remedy-related opening brief.

Ripple filed a motion to strike testimony from SEC Enforcement Division Accountant Andrea Fox.

The SEC included testimony and exhibits from Andrea Fox (the Fox Declaration) in its March opening brief filing, arguing for a punitive penalty and an injunction. Ripple argued that Andrea Fox was an expert witness and that the SEC failed to provide her identity and testimony during remedies-related discovery.

The SEC disputed the Motion to Dismiss, stating that Andrea Fox was a summary witness. Significantly, the SEC does not need to provide summary witness testimony during discovery because summary witnesses summarize existing evidence.

In the reply brief, Ripple argued that Fox did not summarize Ripple’s financial statements. Ripple also stated that if Fox was a summary witness, the SEC still needed to disclose her during discovery and have the opportunity to depose her. In the reply brief, Ripple pointed out that the SEC did not address the cases Ripple cited in its Motion to Strike.

The courts could rule on the Motion to Strike at any time. Nevertheless, the SEC must file its remedy-related reply brief by May 6. The remedy-related reply brief will contest Ripple’s opposition to the SEC’s opening brief arguing for punitive penalty and injunction.

After the May 6 filing, the courts will decide on the penalty Ripple must pay for breaching US securities laws. Moreover, the court will also decide whether to prohibit Ripple from selling XRP to institutional investors. The court ruling could influence Ripple’s expansion plans in the US.

XRP Price Action

Weekly Chart sends bearish price signals.
XRPUSD 030524 Weekly Chart

Daily Chart

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

An XRP breakout from the top trend line would support a move to the 50-day EMA. Furthermore, a break above the 50-day EMA could give the bulls a run at the 200-day EMA and $0.5739 resistance level.

Investors should consider SEC vs. Ripple case-related news.

Conversely, an XRP drop below the bottom trend line would bring the $0.48 handle into play.

The 14-day RSI reading, 44.41, indicates an XRP break below the $0.48 handle before entering oversold territory.

XRP Daily Chart affirms bearish price signals.
XRPUSD 030524 Daily Chart

4-Hourly Chart

On the 4-hourly, XRP held above the 50-day EMA while hovering below the 200-day EMA. The EMAs sent bullish near-term but bearish longer-term price signals.

An XRP move through the top trend line would give the bulls a run at the $0.5361 resistance level.

However, a fall through the bottom trend line and the 50-day EMA could give the bears a run at the $0.48 handle. Buying pressure may intensify at the bottom trend line. The 50-day EMA is confluent with the bottom trend line.

The 14-day RSI reading, 55.80, suggests an XRP move to the 200-day EMA before entering overbought territory.

XRP 4-Hourly Chart sends bullish near-term price signals.
XRPUSD 030524 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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