- XRP Experienced a Slight Decline: XRP fell by 0.88% on Saturday, partially reversing a 1.05% gain and ending the day at $0.5078.
- SEC’s Motion for Interlocutory Appeal: Deliberation continues as Judge Torres weighs the arguments.
- Interconnection with Coinbase Case: SEC’s motion interlinks with its ongoing case against Coinbase, adding another layer of complexity.
The Saturday Overview
XRP declined by 0.88% on Saturday. Partially reversing a 1.05% gain from Friday, XRP ended the day at $0.5078.
The Looming Court Ruling
Another week of court deliberation on the SEC motion for interlocutory appeal passes. Judge Analisa Torres, the presiding Judge in the SEC v Ripple case, received the necessary arguments for the SEC motion by September 8.
While rulings can come within a week, other decisions can take several months, depending on the complexity of a case. Judge Torres is unlikely to rush her deliberation despite already applying the Howey test in her original ruling.
Uncertainty about the ruling on the SEC motion has weighed on XRP buyer appetite. Investor jitters will likely further impact price action. There is no rule of thumb on the length of deliberation and the outcome. However, a lengthened review period would further test investor resilience.
SEC v Ripple and SEC v Coinbase Interlock
In August, Coinbase filed a motion to dismiss the SEC charges, which include allegedly operating as an unregistered securities exchange, broker, and clearing agency. Other SEC charges include the unregistered offering and selling of securities in connection with its staking-as-a-service program.
If Judge Katherine P. Failla rules in favor of the motion to dismiss, it would be a big win for the US crypto market. The timing of the ruling would also be significant. If Judge Failla rules before Judge Torres, Judge Torres may have a stronger footing to deny the SEC motion for interlocutory appeal.
Judge Torres would also have the opportunity to reference a Judge Failla ruling in her rebuttal of criticism from Judge Jed S. Rakoff, the presiding Judge in the SEC v Terraform Labs case.
Judge Rakoff stated that Judge Torres made an error declaring that XRP was not a security in Programmatic Sales. Significantly, Judge Rakoff saw no difference between stocks and institutional sales when classifying as a security.
Unsurprisingly, XRP and the broader crypto market are in a holding pattern. The implications of the rulings on the respective cases and the crypto market will be significant.
Crypto-Law US founder and attorney John E. Deaton believes a favorable ruling on Coinbase’s dismissal motion could compel the SEC to settle with Ripple. Deaton represented over 70,000 XRP holders in the SEC v Ripple case as an Amicus Curiae.
XRP Price Action
XRP remained below the 50-day and 200-day EMAs, reaffirming bearish price signals. A fall through the $0.5042 support level would bring sub-$0.48 into play. Uncertainty about the SEC motion for interlocutory appeal remains a headwind.
However, a break above the 200-day EMA would support an XRP move to the 50-day EMA and the trend line. Selling pressure will likely intensify at $0.5310. The 50-day EMA is confluent with the trend line.
The 47.37 14-Daily RSI reading supports an XRP fall through the $0.5042 support level to sub-$0.50 before entering oversold territory.
XRP hovers above the 50-day EMA while sitting below the 200-day EMA, sending bullish near-term but bearish longer-term price signals.
An XRP break through the 200-day EMA would support an XRP move toward the trend line. However, investors would need favorable updates from the ongoing SEC cases to support a breakout from the 200-day EMA.
A fall through the 50-day EMA would support an XRP break below the $0.5042 support level to target sub-$0.48.
The 14-4 Hourly RSI 46.89 reading indicates an XRP return to sub-$0.50 before entering oversold territory.
This article was originally posted on FX Empire
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