Key Points:
- Ripple’s ongoing legal battle with the SEC and fading hopes of a settlement.
- The pivotal SEC v Coinbase motion to dismiss and its potential implications.
- XRP’s price movements, market trends, and what lies ahead in the crypto space.
In light of the recent court ruling denying the SEC’s motion for an interlocutory appeal, XRP’s global crypto presence is on the rise.
Friday’s Recap
XRP made a modest gain of 0.48% on Friday, partially recovering from a 1.23% loss on Thursday. It closed the day at $0.4852, notably marking the end of a six-day losing streak.
XRP Replaces USD Coin in HKVAC Index Rebalancing
On Friday, the Hong Kong Virtual Asset Consortium (HKVAC) announced its quarterly crypto index rebalancing, with a significant change. USD Coin (USDC) was replaced by XRP in several crypto indexes. This move follows the Court’s Programmatic Sales ruling, affirming XRP’s non-security status. The Court’s denial of the SEC’s motion for interlocutory appeal paves the way for XRP’s broader inclusion in global crypto products.
There were no SEC v Ripple case-related developments affecting investor sentiment on Friday. The crypto market now awaits the SEC v Ripple trial, scheduled for April 2024, with fading hopes of a settlement. Legal experts in the crypto field anticipate further appeals from the SEC, potentially prolonging the case until 2027. Notably, Jeremy Hogan, a partner at Hogan & Hogan, predicts a potential trial conclusion date of June 14, 2027, if the SEC proceeds with the trial and appeals unfavorable judgments.
Facing a protracted legal battle, Ripple would require substantial financial resources, with Ripple CEO Brad Garlinghouse estimating the legal expenses at $200 million.
While Ripple prepares for its trial, the SEC v Coinbase case offers a glimmer of hope for a potential settlement.
Pivotal Ruling in SEC v Coinbase Motion to Dismiss
Coinbase filed a motion to dismiss on August 4, 2023, arguing that the SEC lacks the statutory authority to regulate crypto exchanges. Coinbase, the largest US crypto exchange, faces SEC charges filed in June 2023, following its public listing in 2021.
John E. Deaton, the founder of Crypto Law, suggests that the outcome of the SEC v Coinbase motion to dismiss could influence the SEC’s stance on settling the case against Ripple. A favorable decision for Coinbase could set a precedent in the US digital asset space.
XRP Price Movements
Daily Chart
XRP remains below the 50-day and 200-day EMAs, signaling bearish price trends. Notably, the 50-day EMA is approaching a convergence with the 200-day EMA, potentially signaling further XRP selling pressure. An XRP rebound to $0.49 could pave the way for a challenge of the $0.5042 resistance level. Investor sentiment will be swayed by developments in the SEC v Coinbase and Ripple cases. Conversely, a drop below the $0.4700 support level may lead to a bearish push towards $0.45. Increased SEC scrutiny of the US digital asset space is likely to impact XRP’s demand. The 14-day RSI reading of 38.01 suggests that XRP may dip below $0.48 before entering oversold territory.
4-Hourly Chart
On the 4-hour chart, XRP remains below the 50-day and 200-day EMAs, reinforcing the bearish sentiment. A break above the 50-day EMA could support XRP’s move towards the $0.5042 resistance level. Conversely, a drop below $0.48 may trigger a bearish push towards the $0.47 support level. The 4-hour RSI, with a reading of 42.21, indicates a potential move towards the $0.4700 support level before entering oversold territory.
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Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.
