XRP News Today: Ripple’s Legal Woes Weigh on XRP Amidst SEC Scrutiny

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The Friday Overview

On Friday (May 10), XRP slid by 3.76%. Reversing a 0.87% gain from Thursday (May 9), XRP ended the session at $0.5016.

SEC vs. Ripple: Uncertainty Plagues XRP Amidst Intensifying SEC Activity

On Friday (May 10), there was no SEC vs. Ripple case case-related news to influence buyer demand for XRP.

Investors must wait for the completion of procedural requirements and a court ruling on the penalty for Ripple breaching US securities laws.

The SEC remedies reply brief offered little comfort to investors looking for a favorable outcome. Significantly, the SEC continued arguing for a punitive penalty and injunction prohibiting XRP sales to institutional investors.

The court’s view on ODL contracts could prove pivotal, with Ripple arguing that ODL contracts prevent profits and losses.

However, SEC plans to appeal against the Programmatic Sales of XRP ruling also needs consideration. Following the SEC vs. Terraform Labs court ruling, an SEC appeal could fuel uncertainty across the broader crypto market. In December, Judge Rakoff ruled Terraform Labs and Do Kwon breached US securities laws for failing to register TerraUSD and Luna.

While the SEC vs. Ripple case progresses, the SEC vs. Coinbase case also warrants investor attention. The outcome of the SEC vs. Coinbase case may have more significant ramifications for the US digital asset space.

SEC Files Response to the Coinbase Motion for Interlocutory Appeal

On Friday (May 10), the SEC filed its response to the Coinbase motion for interlocutory appeal.

The SEC defended its decision to deny the Coinbase petition for rulemaking, arguing,

“That the Commission has brought crypto-asset-security-related enforcement actions does not require the Commission to grant the rulemaking petition. To the contrary, in authorizing those enforcement actions, the Commission necessarily determined that the agency could assert claims under existing law.”

The SEC continued,

“And the courts presiding over those cases have agreed, an objective judicial assessment that cannot be squared with Coinbase’s protestations that those enforcement actions are an unauthorized power grab and an act of agency self-aggrandization.”

Coinbase filed the motion for interlocutory appeal in response to Judge Katherine Failla denied, in large part, the Coinbase motion to dismiss (MTD). Judge Failla rejected the motion to dismiss allegations against Coinbase operating as an unregistered intermediary of securities.

Coinbase filed the MTD, arguing the SEC lacked the statutory authority to regulate crypto exchanges.

XRP and the broader market could face selling pressure if the court denies the Coinbase motion for interlocutory appeal. An SEC victory could strengthen its case to regulate the US digital asset space through enforcement. More significantly, an SEC win would also give the SEC a stronger foundation to argue that cryptos are securities.

XRP Price Action

XRPUSD 110524 Weekly Chart

Daily Chart

XRP remained well below the 50-day and 200-day EMAs, affirming the bearish price signals.

An XRP break above the trend lines would support a move toward the 50-day EMA. A breakout from the 50-day EMA would bring the 200-day EMA and the $0.5739 resistance level into play.

Investors should monitor SEC vs. crypto case-related chatter.

Conversely, an XRP drop below $0.50 could give the bears a run at the $0.48 handle.

The 14-day RSI reading, 40.96, indicates an XRP drop below the $0.48 handle before entering oversold territory.

XRPUSD 110524 Daily Chart

4-Hourly Chart

On the 4-hourly, XRP sat below the 50-day and 200-day EMAs. The EMAs confirmed the bearish price trends.

A move through the trend lines would give the bulls a run at the 50-day EMA. A break above the 50-day EMA could signal a move toward the $0.5361 resistance level and the 200-day EMA. Selling pressure may intensify at the $0.5361 resistance level. The 200-day EMA is confluent with the resistance level.

However, an XRP break below the $0.50 handle could signal a drop to the $0.48 handle.

The 14-day RSI reading, 37.32, suggests an XRP fall to the $0.48 handle before entering oversold territory.

XRPUSD 110524 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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