XRP News Today: Ripple’s Legal Battle with SEC Sows Uncertainty in Market

Bob Mason
Published: Apr 3, 2024, 01:33 UTC

Key Points:

  • XRP slid by 4.27% on Tuesday, ending the session at $0.5858.
  • Risk aversion from falling bets on a June Fed rate cut impacted XRP and the broader crypto market.
  • Investor jitters about SEC plans to appeal the Programmatic Sales of XRP contributed to the losses.
XRP News Today

In this article:

The Tuesday Overview

On Tuesday, XRP slid by 4.27%. Following a 2.86% loss on Monday, XRP ended the session at $0.5858.

US Economic Indicators Impact BTC-spot ETF Flows and the Broader Market

The BTC-spot ETF market reacted to better-than-expected US economic data on Monday, ending the session with net outflows. A resilient US economy and reduced expectations of a US economic recession drove US Treasury yields higher, sending riskier assets into the red.

On Monday, April 1, the BTC-spot ETF market saw net outflows of $86 million. BTC-spot ETF market flow data for Tuesday, April 2, could inflict more losses. Net outflows from Grayscale Bitcoin Trust and ARK 21Shares Bitcoin ETF put iShares Bitcoin Trust in the driving seat to prevent a second day of net outflows.

The current crypto market retreat coincided with increased uncertainty about the SEC vs. Ripple case.

SEC vs. Ripple: Programmatic Sales and an SEC Appeal

There were no SEC vs. Ripple case-related updates to affect XRP price trends. Nonetheless, SEC plans to appeal against the Programmatic Sales of XRP ruling remains an XRP headwind.

Court rulings in the SEC vs. Terraform Labs and Coinbase cases have likely ended hopes of a settlement in the SEC vs. Ripple case.

  • SEC vs. Terraform Labs: Judge Rakoff ruled that Terraform Labs and founder Do Kwon breached US securities laws for failing to register Luna and TerraUSD as securities.
  • SEC vs. Coinbase: Judge Failla partially granted the Coinbase (COIN) Motion to Dismiss (MTD). But Judge Failla did not grant the MTD relating to Coinbase operating as an unregistered securities exchange.

The two rulings put the SEC on better footing vis-à-vis appealing against the Programmatic Sales ruling. If the SEC can overturn the Programmatic Sales ruling, the US crypto market could face a difficult transition period. SEC registration requirements could force more crypto firms overseas and significantly impact US investor access to the crypto market.

The SEC must wait until the conclusion of the SEC vs. Ripple case to appeal against court rulings.

According to the amended court briefing schedule, Ripple must file its remedy-related opposition brief by April 22 and a redacted version by April 24. The SEC must file its reply brief by May 6. Judge Analisa Torres could decide on the penalty Ripple must pay for breaching Section 5 of the 1933 Securities Act in the summer. Considering the timelines, the appeals process could extend into 2025.

XRP Price Action

Weekly Chart sends bullish price signals.
XRPUSD 030424 Weekly Chart

Daily Chart

XRP sat below the 50-day EMA while hovering above the 200-day EMA. The EMAs sent bearish near-term but bullish longer-term price signals.

An XRP break above the 50-day EMA would support a move toward the $0.6609 resistance level. A breakout from the $0.6609 resistance level would give the bulls a run at the $0.70 handle.

SEC vs. crypto-related chatter, SEC activity, and US economic indicators need consideration.

Conversely, a drop below the 200-day EMA and the $0.5740 support level could bring the trend line into play.

The 14-day RSI reading, 43.53, suggests an XRP fall to the trend line before entering oversold territory.

XRP Daily Chart sends bearish near-term price signals.
XRPUSD 030424 Daily Chart

4-Hourly Chart

On the 4-hourly, XRP remained comfortably below the 50-day and 200-day EMAs. The EMAs sent bearish price signals. Significantly, the 50-day EMA converged on the 200-day EMA. A bearish cross could signal an XRP slide to the trend line.

An XRP return to the 200-day and 50-day EMAs could bring the $0.6609 resistance level into play.

However, a break below the $0.5740 support level could give the bears a run at the trend line.

The 4-hourly RSI, with a reading of 36.59, indicates an XRP drop below the $0.5740 support level before entering oversold territory.

XRP 4-Hourly Chart sends bearish price signals.
XRPUSD 030424 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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