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XRP News Today: Ripple’s Chief Legal Officer Douses Settlement Hopes in SEC Case

By:
Bob Mason
Updated: Apr 17, 2024, 07:27 GMT+00:00

Key Points:

  • XRP fell by 0.14% on Tuesday, closing the session at $0.4973.
  • Ripple Chief Legal Officer Stuart Alderoty poured cold water on hopes of a settlement in the SEC vs. Ripple case.
  • On Wednesday, investors should monitor SEC vs. crypto-related chatter, news updates from the Middle East, and SEC activity.
XRP News Today

The Tuesday Overview

XRP fell by 0.14% on Tuesday. Following a 1.13% loss on Monday, XRP closed the session at $0.4973.

SEC vs. Ripple Clarification Leaves XRP in Negative Territory

This week, investor focus on the SEC v Ripple case intensified on speculation of a settlement. The Southern District of New York Proceedings Calendar showed an SEC vs. Ripple Final Pretrial Conference for April 16.

Ripple Chief Legal Officer Stuart Alderoty poured cold water on hopes of a settlement, saying,

“Seeing some confusion on next steps with the SEC vs. Ripple case. To clarify – Ripple will file its response to the SEC’s request for penalties by April 22 and the SEC has until May 6 to reply. There is no final pretrial conference because the SEC dismissed the charges against Brad Garlinghouse and Chris Larsen.”

On Tuesday, we highlighted that there is no trial, and the chances of a settlement are slim considering the content of the SEC’s opening brief.

Alderoty referred to the remaining filing deadlines, the first being April 22. Ripple must file its opposition brief to the SEC’s opening brief. The size of the penalty for breaching US securities laws could hinge on four factors:

  • Pre-complaint proceeds from XRP sales to US institutional investors.
  • Post-complaint breaches of US securities laws.
  • Proceeds from post-complaint XRP sales to US institutional investors, if any.
  • Actual financial harm to US institutional investors.

In the opposition filing, Ripple may cite Morrison vs. NAB. The US Supreme Court ruled that the SEC only has jurisdiction over US-based sales.

The size of the penalty could be significantly lower if Ripple can demonstrate that,

  • Most pre-complaint proceeds were from non-US institutional investors.
  • There were no post-complaint XRP sales to US institutional investors.
  • US institutional investors did not suffer financial harm.

Ripple must file an unredacted version of the opposition brief by April 24.

XRP Price Action

Weekly Chart sends bearish price signals.
XRPUSD 170424 Weekly Chart

Daily Chart

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

An XRP break above the bottom trend line would give the bulls a run at the top trend line. A breakout from the top trend line could support a move toward the $0.5739 resistance level.

SEC vs. crypto-related updates and news from the Middle East need investor consideration.

Conversely, a drop below the $0.48 handle could give the bears a run at the $0.45 level.

The 14-day RSI reading, 33.20, indicates an XRP drop below the $0.48 handle before entering oversold territory.

XRP Daily Chart affirms bearish price signals.
XRPUSD 170424 Daily Chart

4-Hourly Chart

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

A break above the bottom trend line would bring the top trend line and the $0.5361 resistance level into play. Selling pressure could intensify at the $0.5361 resistance level as the trend line is confluent with the resistance level.

However, an XRP fall through the $0.48 handle could signal a drop to the $0.45 handle.

The 4-hourly RSI, with a reading of 40.95, suggests an XRP fall to the $0.48 handle before entering oversold territory.

XRP 4-Hourly Chart reaffirms the bearish price signals.
XRPUSD 170424 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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