XRP News Today: Ripple’s Response Deadline Looms – SEC Case Analysis

Bob Mason
Updated: Apr 8, 2024, 02:22 GMT+00:00

Key Points:

  • XRP gained 0.19% on Sunday, ending the session at $0.5944.
  • Investor sentiment toward the ongoing SEC vs. Ripple case left XRP below the $0.60 handle.
  • Investors should monitor SEC vs. crypto case-related news and SEC activity on Monday.
XRP News Today

The Sunday Overview

XRP gained 0.19% on Sunday, following a 1.09% increase on Saturday. However, in the week ending April 7, XRP closed 5.62% lower at $0.5944.

SEC vs. Ripple: Opposition Brief Filing in Focus

On Sunday, April 7, there were no SEC vs. Ripple case-related updates to warrant investor attention. Nonetheless, investors remained cautious as they awaited Ripple’s response to the SEC’s opening brief.

On March 26, the SEC filed a redacted version of the March 22 remedy-related opening brief. The SEC argued for punitive penalties on Ripple for violating US securities laws. In addition to seeking punitive penalties, the SEC argued for a court order prohibiting Ripple from selling XRP to institutional investors.

The SEC alleged that Ripple continued breaching US securities laws after the December 2020 complaint. Judge Sarah Netburn previously warned the court could consider post-complaint conduct in determining penalties.

Ripple must file its opposition brief by April 22. A redacted version will be available on April 24. The response to the opening brief must address the matter of post-complaint conduct.

Ripple’s financial capacity to pay potential punitive penalties may be a factor to consider. However, a court order prohibiting Ripple from selling XRP to institutional investors would impact plans to grow the US business.

US case law could allow Ripple to address allegations of breaching securities laws after the complaint. In Morrison vs. NAB, the US Supreme Court ruled the SEC only has jurisdiction over US-based sales. If Ripple can demonstrate all post-complaint sales were outside the US, the court could impose a less punitive penalty.

The penalty may be lower than the $729 million from pre-complaint proceeds cited in the opening brief. The courts may only consider proceeds from XRP sales to US institutional investors.

Ripple must also demonstrate that post-complaint XRP sales did not breach US securities laws to avoid prohibition from selling XRP to US institutional investors.

XRP price trends reflected investor concerns regarding the case, with XRP sitting below the $0.60 mark.

XRP Price Action

Weekly Chart sends bullish price signals.
XRPUSD 080424 Weekly Chart

Daily Chart

XRP remained below the 50-day EMA while holding above the 200-day EMA. The EMAs affirmed the bearish near-term but bullish longer-term price signals.

An XRP breakout from the 50-day EMA would support a move toward the $0.6609 resistance level.

SEC vs. crypto-related updates and SEC activity warrant investor attention.

Conversely, a fall through the 200-day EMA and the $0.5740 support level would bring the trend line into play.

The 14-day RSI reading, 45.78, indicates an XRP drop to the trend line before entering oversold territory.

XRP Daily Chart sends bearish near-term price signals.
XRPUSD 080424 Daily Chart

4-Hourly Chart

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

An XRP break above the 50-day EMA would support a move to the 200-day EMA. A breakout from the 200-day EMA could give the bulls a run at the $0.6609 resistance level.

However, an XRP fall through the $0.58 level could bring the $0.5740 support level into play.

The 4-hourly RSI, with a reading of 49.66, suggests an XRP drop to the trend line before entering oversold territory.

XRP 4-Hourly Chart sends bearish price signals.
XRPUSD 080424 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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