- XRP faced a reversal, dropping 0.63% Tuesday, offsetting Monday’s 0.64% gain to close at $0.5021.
- SEC Chair Gary Gensler testifies at Capitol Hill; Ripple’s case is poised as a significant discussion topic.
- Coinbase CEO Brian Armstrong addresses Capitol Hill, emphasizing the merits of a regulated US crypto sphere.
The Tuesday Overview
On Tuesday, XRP declined by 0.63%. Reversing a 0.64% gain from Monday, XRP ended the day at $0.5021.
SEC Chair Gensler on Capitol Hill with Ripple a Likely Topic of Discussion
SEC Chair Gary Gensler will give testimony to the Financial Services Committee on Capitol Hill today.
The SEC Chair is appearing at the Oversight of the Securities and Exchange Commission hearing. US lawmakers will likely deliver tough questions on the SEC motion for interlocutory appeal.
Judge Analisa Torres continues to deliberate on the SEC motion, with a ruling likely at any time.
Ripple Chief Legal Officer Stuart Alderoty shared his views on Gary Gensler’s pre-drafted testimony, saying,
“The SEC Chair will go to Congress tomorrow and lie by stating that there is such a thing as a crypto asset securities market and tokens themselves are investment contracts.”
“Perhaps just one representative will read this line from the Court’s 7/13/23 decision in the Ripple case: ‘XRP, as a digital token, is not in and of itself a contract, transaction [,], or scheme that embodies the Howey requirements of an investment contract.
SEC Chair Gary Gensler will kickstart his discussion on crypto by saying,
“There is nothing about the crypto asset securities markets that suggests that investors and issuers are less deserving of the protection of our securities laws.”
Continuing to categorize cryptos as securities, the SEC Chair goes on to say,
“Given that most crypto tokens are subject to the securities laws, it follows that most are crypto intermediaries.”
Coinbase CEO Brian Armstrong Goes to Capitol Hill
While the market focus will be on the Financial Services Committee Hearing, Coinbase CEO Brian Armstrong is also on Capitol Hill today. The Coinbase CEO is targeting lawmakers and staff on the needs and benefits of a regulated US crypto market.
Armstrong is on a crypto awareness campaign, supporting a reported 52 million Americans who own crypto.
While Armstrong also pushes ahead with the standwithcrypto.org campaign, investors await a Judge Katherine Failla ruling on the Coinbase motion to dismiss.
The SEC charged Coinbase in June 2023 for allegedly operating as an unregistered securities exchange, broker, and clearing agency. Additional charges included offering and selling unregistered securities via its staking-as-a-service program.
The Gary Gensler hearing on Capitol Hill will garner more crypto community interest than normal.
John E. Deaton, Crypto-Law US founder, believes the ruling for the Coinbase MTD to force the SEC to settle the Ripple case. Comments in line with Deaton’s expectations will emphasize updates related to the SEC v Coinbase case more.
XRP Price Action
XRP hovered below the 50-day and 200-day EMAs, sending bearish price signals. A return to sub-$0.4950 would support an XRP move to the $0.4700 support level. Uncertainty about the ongoing SEC cases remains headwinds for XRP and the broader market.
However, a break above the $0.5042 resistance level would bring the 200-day EMA into play.
The 44.33 14-Daily RSI reading supports an XRP fall to the $0.4700 support level before entering oversold territory.
XRP sits below the 50-day and 200-day EMA, reaffirming bearish price signals. An XRP break above the $0.5042 resistance level and 50-day EMA would give the bulls a run at the 200-day EMA. Selling pressure will build at $0.5040. The 50-day EMA is confluent with the $0.5042 resistance level.
However, a fall to sub-$0.49 would support an XRP fall to the $0.4700 support level.
The 14-4 Hourly RSI 44.10 reading indicates an XRP move to the $0.47 support level before entering oversold territory.
This article was originally posted on FX Empire
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