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XRP News Today: SEC vs. Ripple Lawsuit Filings Spark Investor Jitters

By:
Bob Mason
Published: Apr 25, 2024, 01:10 GMT+00:00

Key Points:

  • XRP slid by 3.21% on Wednesday (April 24), ending the session at $0.5272.
  • Market sentiment toward Fed monetary policy and the ongoing SEC vs. Ripple case impacted buyer demand for XRP.
  • SEC vs. crypto case-related news and SEC activity warrant investor attention on Thursday, April 25.
XRP News Today

In this article:

The Wednesday Overview

On Wednesday, April 24, XRP slid by 3.21%. Following a 2.09% loss on Tuesday (April 23), XRP ended the session at $0.5272.

US Economic Indicators Impact XRP and the Broader Crypto Market

On Wednesday, US durable goods orders impacted buyer demand for riskier assets. Durable goods orders increased by 2.6% in March after advancing by 0.7% in February. Moreover, core durable goods rose by 0.2% after a 0.1% increase in February. The numbers signaled a robust US economy, impacting investor bets on a September Fed rate cut.

The total crypto market cap declined by 2.97% ($70.515 billion) to $2,307 billion on Wednesday, April 24.

While investor sentiment toward Fed monetary policy impacted riskier assets, the SEC vs. Ripple case remained a consideration.

SEC vs. Crypto: Court Rulings and the SEC Reply Brief

Uncertainty about the ongoing SEC vs. Ripple case impacted buyer demand for XRP. On Tuesday, Ripple filed a redacted version of the remedy-related opposition brief. Ripple cited US case law to argue against a $2 billion disgorgement and prohibition from selling XRP to institutional investors.

This week, Ripple also filed a motion to strike, contesting the inclusion of new expert testimony in the SEC opening brief.

The ruling on the Ripple motion to strike expert testimony will influence XRP price trends. Nevertheless, the SEC reply brief will likely impact XRP more. Convincing rebuttals to Ripple’s opposition brief could fuel fears of a punitive penalty for selling unregistered XRP to institutional investors.

Prohibition against XRP sales to US institutional investors would impact the Ripple business and demand for XRP.

SEC appeal plans also need consideration for investors eying XRP price trends. At the end of the Ripple case, investors expect the SEC to appeal against the Programmatic Sales of XRP ruling. In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.

The court could rule on remedies for breaching US securities laws over the summer. Timelines suggest an SEC appeal could extend the case into 2025.

XRP Price Action

Weekly Chart sends bearish near-term but bullish longer term price signals.
XRPUSD 250424 Weekly Chart

Daily Chart

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

A breakout in XRP above the top trend line would indicate support for a move to the 50-day EMA. A breakout from the 50-day EMA could bring the 200-day EMA and the $0.5739 resistance level into play. Selling pressure could intensify at the $0.5739 resistance level. The 200-day EMA is confluent with the resistance level.

SEC vs. Ripple case-related news and US economic indicators need investor consideration.

Conversely, a drop below the bottom trend line would bring the $0.50 handle into play.

The 14-day RSI reading, 44.09, indicates an XRP fall to the $0.50 handle before entering oversold territory.

XRP Daily Chart sends bearish price signals.
XRPUSD 250424 Daily Chart

4-Hourly Chart

On the 4-hourly, XRP remained below the 50-day and 200-day EMAs, sending bearish price signals.

A break above the top trend line and the $0.5361 resistance level would support a move toward the 200-day EMA. A breakout from the 200-day EMA would bring the $0.5739 resistance level into play.

However, a drop below the bottom trend line could signal a drop to the $0.50 handle.

The 4-hourly RSI, with a reading of 46.83, suggests a fall to the $0.50 handle before entering oversold territory.

XRP 4-Hourly Chart reaffirms the bearish price signals.
XRPUSD 250424 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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