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XRP News Today: SEC vs. Uniswap Lawsuit Deepens Ripple Woes

By:
Bob Mason
Updated: Apr 13, 2024, 03:02 GMT+00:00

Key Points:

  • XRP tumbled by 10.10% on Friday, ending the session at $0.5472.
  • SEC moves against Uniswap resonated, with falling bets on a June Fed rate cut contributing to the losses.
  • On Saturday, SEC vs. crypto case-related chatter and SEC activity warrant investor attention.
XRP News Today

In this article:

The Friday Overview

XRP tumbled 10.10% on Friday. Following a 1.52% loss on Thursday, XRP ended the session at $0.5472. Significantly, XRP fell to a session low of $0.5076 before retaking the $0.54 handle. XRP continued to underperform the broader crypto market. On Friday, the total crypto market cap declined by 5.93% to $2,377 billion.

Uniswap Receives Wells Notice: Impact on Crypto Market

News of Uniswap (UNI) receiving a Wells notice from the SEC resonated on Friday. Crypto investors have become more resilient to SEC moves against crypto platforms. However, the Uniswap Wells notice had a different flavor for investors to consider.

The SEC filed charges against Uniswap, alleging the Uniswap Protocol web application and wallet breached US securities laws. Moreover, the SEC issued the Wells notice despite the court ruling in the SEC v Coinbase (COIN) case. Judge Katherine Failla partially granted the Coinbase Motion to Dismiss (MTD), dismissing the charges relating to the Coinbase Wallet.

For XRP, the SEC move against Uniswap reinforced investor expectations of the SEC appealing 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 Wells notice was also a reality check, with the SEC undeterred from recent court losses.

An SEC win against Uniswap could create more crypto confusion. Despite numerous court rulings, US lawmakers and courts have not established a precedent for classifying cryptocurrencies as securities or commodities.

The Programmatic Sales of XRP ruling and the court ruling on the Coinbase Motion to Dismiss highlighted the issues with relying on the courts to define crypto classifications. While dismissing charges relating to the Coinbase Wallet, Judge Failla denied the Motion to Dismiss charges relating to Coinbase operating as an unregistered securities exchange.

In the Programmatic Sales of XRP ruling, Judge Torres surmised,

“Having considered the economic reality of the Programmatic Sales, the Court concludes that the undisputed record does not establish the third Howey prong. Whereas the Institutional Buyers reasonably expected that Ripple would use the capital it received from its sales to improve the XRP ecosystem and thereby increase the price of XRP, Programmatic Buyers could not reasonably expect the same.”

Contrastingly, Judge Failla stated that,

“The crypto nomenclature may be of recent vintage, but the challenged transactions fall comfortably within the framework that the courts have used to identify securities for nearly eighty years.”

Given the SEC vs. Terraform Labs ruling, confidence in the courts upholding the Programmatic Sales of XRP ruling may have diminished. In December, Judge Rakoff ruled Terraform Labs and Do Kwon breached US securities laws for failing to register Luna and TerraUSD.

News of the SEC move against Uniswap coincided with the US CPI Report that sank bets on a June Fed rate cut. A higher-for-longer Fed rate path could impact borrowing costs, reducing the appetite for riskier assets.

XRP Price Action

Weekly Chart sends bearish near-term price signals.
XRPUSD 130424 Weekly Chart

Daily Chart

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

An XRP breakout from the $0.55 handle would give the bulls a run at the $0.5739 resistance level and 200-day EMA. A break above the 200-day EMA could bring the 50-day EMA into play.

SEC vs. crypto-related chatter warrants investor attention.

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

The 14-day RSI reading, 36.04, suggests an XRP fall to the bottom trend line before entering oversold territory.

XRP Daily Chart sends bearish price signals.
XRPUSD 130424 Daily Chart

4-Hourly Chart

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

An XRP return to the $0.56 handle would support a move to the $0.5739 resistance level. A breakout from the $0.5739 resistance level could give the bulls a look at the 50-day EMA.

However, an XRP drop below the top trend line and the $0.5361 support level would bring the bottom trend line into play.

The 4-hourly RSI, with a reading of 26.29, shows XRP in oversold territory. Buying pressure could intensify at the top trend line.

XRP 4-Hourly Chart sends bearish price signals.
XRPUSD 130424 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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