The Monday Overview On Monday, XRP gained 1.10%. Following a […]
The Monday Overview
On Monday, XRP gained 1.10%. Following a 0.38% rise on Sunday, XRP ended the session at ~~FIRSTPARAGRAPHTAG~~.5319.
SEC v Ripple Takes a Back Seat as FOMO Goes into Overdrive
On Monday, there were no SEC v Ripple case-related updates to consider. XRP tracked bitcoin (BTC) and the broader crypto market into positive territory. BTC extended its winning streak to eight sessions on Monday. Significantly, BTC struck $50,000 for the first time since December 2021, another BTC-spot ETF market landmark moment.
Nonetheless, XRP trailed BTC and the broader crypto market. On Tuesday, the total crypto market cap rallied 3.52% ($61.815 billion) to $1,820 billion.
SEC plans to appeal the Programmatic Sales of XRP ruling remains an XRP headwind. The SEC must wait until the end of the SEC v Ripple case before being able to appeal against the Programmatic Sales ruling. In July 2023, Judge Analisa Torres ruled that Programmatic Sales of XRP did not satisfy the third prong of the Howey Test.
The SEC tried appealing against the ruling by filing a Motion for interlocutory appeal. An interlocutory appeal pauses the ongoing case, allowing a party to appeal against a court ruling before completing the case. However, Judge Torres rejected the filing in October 2023.
This week, investors must monitor court filings related to XRP sales to US institutional investors. In July 2023, Judge Torres ruled that Ripple breached section 5 of the Securities Act for failing to register XRP as a security in institutional sales. The SEC and Ripple are preparing arguments for and against a punitive penalty for breaching US securities laws.
The SEC filed a Motion to Compel in January, asking the court to order Ripple to provide post-complaint-related documents. Last-minute filings before the February 19 deadline for discovery could impact buyer demand for XRP.
Beyond the SEC v Ripple case, investors must also consider SEC v Coinbase (COIN) case-related updates.
SEC v Coinbase: Motion to Dismiss
The SEC and Coinbase await a court ruling on the Coinbase Motion to Dismiss (MTD). Coinbase filed the MTD in August, arguing the SEC lacks the statutory authority to regulate crypto exchanges.
The SEC v Coinbase case took an unexpected turn last week. US Treasury Secretary Janet Yellen gave testimony at a Financial Services Committee hearing. Significantly, Secretary Yellen called on Congress to deliver crypto legislation, possibly supporting the Coinbase MTD.
If Judge Katherine Failla grants the MTD, it could be a boon for Coinbase and XRP. A victory could free the US crypto market from the SEC’s reign of regulation by enforcement. The SEC may also end plans to appeal against the Programmatic Sales ruling.
XRP Price Action
XRPUSD 130224 Weekly Chart
XRP sat below the 50-day and 200-day EMAs, sending bearish price signals.
A break above the $0.5470 resistance level and the 50-day EMA would support a move to the 200-day EMA. Selling pressure could intensify at $0.5470. The 50-day EMA is confluent with the $0.5470 resistance level.
SEC activity, SEC v crypto case-related news, and US lawmaker chatter need consideration.
However, a drop below the $0.52 handle would give the bears a run at the $0.5042 support level.
The 14-day RSI reading, 51.26, indicates an XRP move to the 200-day EMA before entering overbought territory.
XRPUSD 130224 Daily Chart
On the 4-hourly, XRP remained above the 50-day while sitting below the 200-day EMA, sending bullish near-term but bearish longer-term price signals.
A break above the 200-day EMA would support an XRP move to the $0.5470 resistance level.
However, a break below the 50-day EMA would bring the $0.5042 support level into play.
The 4-hourly RSI, with a reading of 61.94, indicates an XRP move to the $0.5470 resistance level before entering the overbought territory.