- Ripple’s opposition to SEC appeal
- Significance of Coinbase case
- Impact on crypto market sentiment
The outcome hangs in the balance as Ripple gears up to contest the SEC’s plea for an interlocutory appeal.
XRP witnessed a minor uptick of 0.02% on Sunday, partially recovering from a 0.46% setback on Saturday. As the week concluded, XRP experienced a 2.89% drop, settling at $0.5233. Despite the bearish trend, XRP managed to steer clear of sub-$0.50 for the ninth consecutive session.
Crypto Advocates Call for Testimonies from Hinman and Clayton
No updates emerged from the ongoing SEC v Ripple case or the SEC’s appeal, leaving investor sentiment unaffected. While courtroom activity remained dormant, the crypto community actively debated the ongoing Ripple legal battle.
During the XDC Conference, John Deaton, the founder of CryptoLaw and an Amicus Curiae attorney, addressed the infamous William Hinman speech:
“It’s not out of the realm of possibility that there could be a case against certain individuals because conspiring to create a monopoly for a particular group is prohibited. What many people may not know is that ETH investors and a16z were instrumental in crafting the speech. And where is Hinman now? He’s a partner at a16z.”
a16z, a venture capital firm focusing on crypto and Web3 startups, manages assets exceeding $7.6 billion.
Emphasis on the Coinbase Case by John E. Deaton
While the SEC v Coinbase (COIN) case showed no recent developments, the crypto community underlined its significance and potential impact if Coinbase prevails.
John E. Deaton, the founder of CryptoLaw and an Amicus Curiae, weighed in on the SEC’s case against Coinbase:
“There’s a legitimate chance in the Coinbase case, there’s a legitimate chance that the Judge can even dismiss the case by saying on this motion to dismiss, which would normally never be granted, by saying that when you go to an exchange and you engage in a blind bid-ask transaction you don’t know who you’re buying it from.”
“The exchange is not the issuer anyway, Coinbase or Uphold are not the issuer, so how can you rely on the efforts of someone else you don’t know you’re purchasing it from.”
“The Judge could say as a matter of law that Howey does not apply to secondary market transactions. These are just asset sales. If we get that decision and we get the Grayscale decision on the Bitcoin-Spot ETF, I believe that’s going to then create the landscape of us moving forward.”
This month, Republican Senator Cynthia Lummis and others submitted Amicus Curiae briefs, urging the Court to dismiss the case.
A favorable ruling could solidify Judge Torres’ decision regarding XRP and Programmatic Sales and potentially curtail the SEC’s regulatory enforcement.
The Week Begins
Following a weekend marked by range-bound trading, attention returns to the SEC v Ripple case. Ripple must submit its opposition to the SEC’s interlocutory appeal motion by September 1, a move that could sway investor sentiment if filed early.
Compelling arguments against the SEC’s motion would lend support to prices. However, investors must remain patient until the SEC responds to Ripple’s submission, due by September 8.
After both Ripple and the SEC fulfill their obligations, Judge Torres will decide on the SEC’s interlocutory appeal motion. The timeline for the Court’s ruling remains uncertain, likely testing investors’ willingness to engage amid uncertainty.
Nonetheless, the crypto market is anticipated to react to news related to SEC v Binance and SEC v Coinbase, along with updates on spot-ETF applications.
Daily Chart Insights
The Daily Chart reveals XRP/USD above the $0.4920 – $0.4780 support range. Following Saturday’s decline, XRP hovers beneath the 50-day and 200-day EMAs, triggering bearish signals for both short-term and longer-term trends.
Presently, the 14-Day RSI sits at 34.57, reflecting a bearish sentiment. Both the RSI and EMAs suggest a potential dip below $0.50 to test the upper limits of the $0.4920 – $0.4780 support range. However, should XRP breach the 200-day EMA, it might rally towards $0.55.
Insights from the 4-Hourly Chart
Analyzing the 4-Hourly Chart, XRP maintains its position above the $0.4920 – $0.4780 support range. However, it remains situated below the 50-day and 200-day EMAs, reaffirming short-term bearish signals.
The 14-4H RSI of 49.30 reflects bearish sentiment, with selling pressure outweighing buying activity. Notably, the RSI and EMAs indicate a potential slide below $0.50, exposing the $0.4920 – $0.4780 support range to bearish pressure. Conversely, an XRP breakout from the 50-day EMA could bring the $0.5750 – $0.5900 resistance range and the 200-day EMA into focus.