Key Points:
- SEC’s recognition of XRP as non-security asset.
- Ripple’s legal stance strengthened.
- Implications on XRP’s market performance.
In a surprising turn of events, the SEC’s recent acknowledgment that XRP is not a security has a positive impact on Ripple’s future prospects amid ongoing legal tensions.
Summary of Sunday’s Developments
On Sunday, XRP experienced a 3.60% rally in its value. Following a 2.71% increase on Saturday, XRP concluded the week with a 13.82% decrease, reaching a value of $0.5386. Notably, XRP managed to avoid dropping below the $0.50 mark for the second consecutive session.
SEC’s Recognition of XRP as a Non-Security Affirmed
The absence of court rulings or official submissions from either the SEC or Ripple on Sunday spared investors from any distractions. This lack of legal activity allowed investors to further react to the SEC’s filing from Friday.
In the document submitted to the court, the SEC explicitly acknowledged that XRP is not classified as a security, stating,
“The SEC does not intend to seek appellate review of any determination with respect to the finding that the underlying assets are merely lines of computer code lacking intrinsic value.”
In response to a tweet by Eleanor Terrett, a journalist and producer at Fox News, highlighting the language used by the SEC, John E Deaton, an attorney representing Amicus Curiae, shared his perspective on the SEC’s acknowledgment,
“There’s no denying that the fact that 75,000 XRP holders fought for this was a major reason for the SEC’s concession. We pushed for the judge to explicitly state that the token itself isn’t a security. In fact, this was the opening argument in our brief.”
Ripple is required to provide a response to the SEC’s filing by September 1, while the SEC has until September 8 to address any response from Ripple.
Anticipating the Developments on Monday
The SEC versus Ripple case and the potential appeal by the SEC against Judge Torres’ ruling on Programmatic Sales are expected to remain central points of focus. Although Ripple has until September 1 to submit its response to the SEC’s filing, an earlier response could have a significant impact.
Furthermore, developments related to the SEC and comments from US lawmakers will also play a crucial role. Investors are closely monitoring figures like Patrick McHenry and Senator Cynthia Lummis on Capitol Hill, anticipating legislative efforts to establish a regulatory framework for cryptocurrencies in the US and to mitigate the SEC’s strong regulatory approach.
News related to the SEC’s actions involving Coinbase (COIN) and Binance will also influence investor sentiment.
XRP’s Price Movement
As of this morning, the value of XRP remains unchanged at $0.5389.
Analysis of Price Charts
Daily Chart: The daily chart reveals that XRP/USD is situated below the resistance range of $0.5750 to $0.5900. Despite a bullish weekend that propelled XRP above the 200-day Exponential Moving Average (EMA), the cryptocurrency remains below the 50-day EMA. This suggests bearish signals in the short term, although the long-term outlook remains optimistic.
Looking at the 14-day Relative Strength Index (RSI) of 34.14, a bearish sentiment is evident. The RSI’s alignment with the 50-day EMA supports the likelihood of XRP’s value falling through the support range of $0.4920 to $0.4780, potentially targeting a level below $0.47. However, if XRP maintains its position above the 200-day EMA, it could muster the strength to challenge the resistance range of $0.5750 to $0.5900, along with the 50-day EMA.
4-Hourly Chart: The 4-hourly chart indicates that XRP remains below the $0.5750 to $0.5900 resistance range. Despite the positive performance over the weekend, XRP’s position relative to the 50-day and 200-day EMAs underscores the presence of short-term bearish signals.
With the 14-4H RSI at 47.95, a bearish sentiment is once again evident, with selling pressure outweighing buying activity. Notably, the alignment of the RSI with the EMAs further supports the likelihood of XRP’s value dropping through the support range of $0.4920 to $0.4780, potentially opening the door to levels below $0.47.
