XRP, the digital currency associated with Ripple, experienced a slight decline on Friday, closing at $0.5050. This partially reversed the modest increase it had seen on Thursday.
One of the key developments that could potentially benefit Ripple is an expected ruling in the ongoing case between the company and the Securities and Exchange Commission (SEC) against Coinbase. This ruling has the potential to positively impact Ripple’s position against the SEC.
The SEC’s stance on cryptocurrency exclusivity, with the exception of Bitcoin, has come under scrutiny. Many experts and members of the crypto community will be closely analyzing the SEC’s response to Ripple’s opposition to its motion for an interlocutory appeal. The strength of the SEC’s argument for a preliminary injunction will certainly affect investor sentiment.
On Friday, the SEC responded to Ripple’s opposition, filing a memorandum in support of its motion for an interlocutory appeal. Defense attorney James Filan criticized the SEC’s argument that the proceedings should be halted due to concerns over judicial resources, calling it “ridiculous.” The SEC further described the issue of programmatic sales as a “difficult legal problem.”
In its filing, the SEC referenced the SEC v. Terraform Labs case, in which Judge Rakoff criticized Judge Torres’ decision. The SEC also claimed that the defendants in the Ripple case had no “institutional interest in an efficient resolution” of the matter. Additionally, the SEC argued that the defendants were seeking to prolong the case in order to continue selling XRP on public markets.
John E. Deaton, founder of CryptoLaw and Amicus Curiae attorney, responded to the filing by calling the SEC “hypocrites” and accused them of wasting valuable judicial resources. The response from the SEC and Ripple’s opposition will now be reviewed by Judge Torres, but the duration of this process remains uncertain. The uncertainty surrounding the ruling will likely test buyer appetite for XRP.
In terms of XRP’s price action, it has been trading sideways for the past seven consecutive periods, maintaining support at $0.5042. However, if XRP were to fall below this support level, it could potentially reach a value below $0.48. On the other hand, positive assessments of Ripple’s submissions and the SEC’s response could bring the trend line and the 200-day exponential moving average into play.
A breakthrough above these levels would allow the bulls to target the resistance level at $0.5470. However, it is worth noting that the 200-day exponential moving average coincides with this resistance level, indicating strong selling pressure around $0.5235. Considering the 14-day relative strength index (RSI) value of 35.31, XRP could potentially fall below $0.48 before entering oversold territory.
Looking at the 4-hour chart, XRP is currently below the 50-day and 200-day exponential moving averages, confirming bearish price signals. However, a breakthrough above the 50-day exponential moving average could provide an opportunity for the bulls to push towards $0.52 and the trend line. A breakthrough above the trend line would signal optimism regarding a rejection of the SEC’s motion by Judge Torres.
However, concerns in the market would support a retreat from the support level at $0.5042, potentially reaching below $0.48. The 14-4H-RSI value of 49.65 suggests that XRP could return to $0.48 before entering oversold territory.
Overall, the outcome of the upcoming ruling in the SEC vs. Coinbase case, as well as the market’s reaction to the SEC’s response to Ripple’s opposition, will significantly impact XRP’s future movements.