XRP News Today: Ripple Opposition Brief Court Filing Deadline

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The Sunday Overview

XRP declined by 0.81% on Sunday. Partially reversing a 5.17% rally from Saturday, XRP closed the session at $0.5248.

SEC vs. Ripple: Deadline for Opposition Brief Filing

There was no SEC v Ripple case-related news to consider on Sunday. The lack of news left investors to look forward to the Monday, April 22, session.

Ripple must file its remedy-related opposition brief filing on April 22. Investors will not have access to the April 22 filing and must wait until Wednesday, April 24, for the redacted version.

Nevertheless, Ripple or the SEC could comment on the theme of the opposition brief. Ripple CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty commented on the SEC opening brief before the redacted version.

In the opposition brief, Ripple must demonstrate that all post-complaint sales of XRP were to non-US institutional investors. Moreover, if Ripple proves the majority of pre-complaint XRP sales were to non-US institutional investors, Judge Analisa Torres could deliver a token penalty ruling.

The SEC filed its remedy-related opening brief in March, presenting arguments for a $2 billion disgorgement. Moreover, the SEC also requested the court to prohibit Ripple from selling XRP to institutional investors.

In the opening brief, the SEC did not differentiate between US and non-US institutional investors. Morrison vs. NAB: the US Supreme Court ruled the SEC only has jurisdiction over US-based sales.

The SEC can respond to the opposition brief by filing a reply brief. According to the amended court briefing schedule, the SEC must file a reply brief by May 6. After the filings, Judge Analisa Torres will decide on the penalty for breaching Section 5 of the 1933 Securities Act. There is no trial to argue for and against a punitive disgorgement.

The opposition brief is the final opportunity to present arguments against a punitive penalty.

At the end of the SEC vs. Ripple case, investors expect the SEC to appeal against the Programmatic Sales of XRP ruling. The ongoing threat of an appeal remains an XRP headwind. In June 2023, Judge Torres opined that programmatic sales of XRP do not satisfy the third prong of the Howey Test.

XRP Price Action

XRPUSD 220424 Weekly Chart

Daily Chart

XRP sat well below the 50-day and 200-day EMAs, sending bearish price signals.

An XRP breakout from the top trend line could give the bulls a run at the 50-day and 200-day EMAs and the $0.5739 resistance level. Selling pressure may increase at the $0.5739 resistance level. The 50-day and 200-day EMAs are confluent with the resistance level.

SEC vs. crypto case-related updates and SEC activity warrant investor attention.

Conversely, a fall through the bottom trend line could signal an XRP drop to the $0.48 handle.

The 14-day RSI reading, 42.80, suggests an XRP drop to the $0.48 handle before entering oversold territory.

XRPUSD 220424 Daily Chart

4-Hourly Chart

On the 4-hourly, XRP remained above the 50-day EMA while hovering below the 200-day EMA. The EMAs affirmed the bullish near-term but bearish longer-term price signals.

An XRP move through the top trend line would give the bulls a run at the $0.5361 resistance level.

However, if XRP falls through the bottom trend line and the 50-day EMA, XRP could target the $0.48 handle. Buying pressure could intensify at the bottom trend line. The 50-day is confluent with the bottom trend line.

The 4-hourly RSI, with a reading of 58.67, indicates an XRP move through the $0.5361 resistance level before entering overbought territory.

XRPUSD 220424 4-Hourly Chart

This article was originally posted on FX Empire

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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