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XRP News Today: SEC Appeal Plans Threaten XRP Price Stability

By:
Bob Mason
Updated: Apr 7, 2024, 04:59 GMT+00:00

Key Points:

  • XRP advanced by 1.09 on Saturday, closing the session at $0.5933.
  • BTC-spot ETF market flow data for Friday offset the effects of the US Jobs Report on buyer demand for cryptocurrencies, including XRP.
  • On Sunday, SEC vs. crypto case-related chatter needs consideration.
XRP News Today

In this article:

The Saturday Overview

On Saturday, XRP gained 1.09%. Reversing a 1.11% loss from Friday, XRP ended the session at $0.5933.

BTC-Spot ETF Market Inflows Counter the Fed Effect

On Friday, April 5, the BTC-spot ETF market saw total net inflows of $203 million despite Grayscale Bitcoin Trust (GBTC) seeing net outflows jump to $199 million. The continued demand for BTC was significant considering the hotter-than-expected US Jobs Report.

However, XRP trailed the broader crypto market. Uncertainty about SEC intentions to appeal against the Programmatic Sales of XRP ruling left XRP at sub-$0.60. As background, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.

Amidst SEC plans to appeal against the Programmatic Sales ruling, increasing scrutiny of the SEC also needs monitoring.

SEC vs. Ripple: SEC Plans to Appeal Create Uncertainty

There were no SEC vs. Ripple case-related updates to influence the buyer appetite for XRP. However, investors remain cautious amidst the ongoing threat of the SEC planning to appeal the Programmatic Sales of XRP ruling.

Recent court rulings may have incentivized the SEC to appeal. If the SEC can overturn the Programmatic Sales ruling, the US courts may give the SEC the legal footing to oversee the US crypto market.

Judge Rakoff ruled that Terraform Labs and founder Do Kwon breached US Securities Laws for failing to register TerraUSD and Luna as securities. Judge Katherine Failla denied the Coinbase (COIN) Motion to Dismiss (MTD) charges relating to operating an unregistered securities exchange.

The court rulings may have dented investor confidence in the courts upholding the Programmatic Sales ruling. However, increasing scrutiny of SEC activity gives the US crypto market hope of US lawmakers intervening with a crypto regulatory framework.

SEC Activity Could Force US Lawmakers to Act

Investors should monitor updates from Empower Oversight and the Office of Inspector General.

In March, Empower Oversight sued the SEC for access to additional crypto conflict of interest-related documents. Empower Oversight filed the claim after alleging the SEC stonewalled a FOIA request.

The conflicts of interest claims link former SEC Chair Jay Clayton, former SEC Director William Hinman, and the SEC vs. Ripple case. More damaging documents could force US lawmakers to address the SEC reign over the US digital asset space.

The Office of Inspector General (IG) is also investigating alleged crypto conflicts of interest in the SEC. William Hinman is a central figure in the investigation.

Hinman formerly served as Director of the SEC Division of Corporation Finance. While at the SEC, Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

The contentious issue relates to his ongoing relationship with his former employer, Simpson Thacher, which is part of a group that promotes Enterprise Ethereum. After leaving the SEC, Hinman returned to Simpson Thacher.

Documents from the SEC vs. Hinman case, known as the Hinman speech-related documents, revealed Hinman’s ongoing meetings with Simpson Thacher despite warnings from the SEC Ethics Division.

XRP Price Action

Weekly Chart sends bullish price signals.
XRPUSD 070424 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 move through the 50-day EMA could give the bulls a run at the $0.60 handle. A return to the $0.60 handle would bring the $0.6609 resistance level into play.

SEC vs. crypto-related news needs investor consideration.

Conversely, a break below the 200-day EMA and the $0.5740 support level could give the bears a run at the trend line.

The 14-day RSI reading, 46.71, suggests an XRP fall to the trend line before entering oversold territory.

XRP Daily Chart sends bearish near-term price signals.
XRPUSD 070424 Daily Chart

4-Hourly Chart

On the 4-hourly, XRP hovered below the 50-day and 200-day EMAs. The EMAs affirmed the bearish near-term price signals.

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

However, an XRP break below the $0.58 handle would give the bears a run at the $0.5740 support level.

The 4-hourly RSI, with a reading of 53.31, indicates an XRP return to the $0.6609 resistance level before entering overbought territory.

XRP 4-Hourly Chart sends bearish price signals.
XRPUSD 070424 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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