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SEC vs. Ripple: The Two-Week Countdown for a Potential $1.3 Billion Appeal

Arslan Butt•Monday, September 23, 2024•3 min read
The anticipation for an appeal from the U.S. Securities and Exchange Commission (SEC) against the latest decisions in the SEC vs. Ripple case on the October 7 deadline is escalating.
Such anticipation is influencing XRP demand, as the price of the cryptocurrency is fluctuating due to the market’s uncertainty.
On August 7, XRP momentarily peaked at $0.6434 before capitalists decided to back off, preparing for potential legal actions. On a notable note, a lawyer who supports cryptocurrencies, Fred Rispoli, talked about the likelihood of an SEC appeal happening and declared that the chances have indeed increased.
He stated that Ripple and the SEC have arranged that 111% of the amount to be decided will be deposited in trust, to be released either 30 days after the appeal deadline or after the appeal has been settled.
Rispoli contemplates that while an appeal is not assured, the fact that the arrangement of trust indicates the SEC is still refusing to disclose its pure intentions.

At this time, Rispoli says that the SEC’s complete chances are centred around 60:40.The SEC has the chance to file an appeal until October 7, which also makes experts debate about what issues the agency may raise in court.

Ripple Case Background and Legal Developments

The struggle of Ripple against the SEC started back in 2020 when the SEC accused Ripple of illegally selling XRP as an unregistered security.
The turning point was on July 13, 2023, when Judge Analisa Torres declared that programmatic sales of XRP failed to meet the definition of security under the Howey Test.
Despite that, the SEC attempted to file an interlocutory motion in August 2023, which aimed for a speedy appeal of the decision. Nevertheless, Judge Torres denied the request in October, indicating that the agency would first have to await the end of the trial before raising a grievance.

Stuart Alderoty, the Chief Legal Officer of Ripple, expressed on September 13 that although the Ripple case is officially over, the SEC’s fair notice defence could still be relevant for other cases involving cryptocurrency.
The SEC has recently also submitted its position in the ongoing case of SEC vs. Binance and reiterated that in the context of the matter in question, Ten Crypto Assets remain securities in the secondary markets.
This serves to further demonstrate the unclear legal implications of cryptocurrency regulation.

XRP Price Outlook Amid Legal Uncertainty

With all the legal tussle, XRP is now priced at $0.5871, reflecting the past day’s 0.85% decline. Despite this decline, XRP stays above crucial support levels.

The said support of $0.5768 is along an upward trendline on the 2-hour chart, indicating that if XRP stays above the level, it could be able to continue to go up. If it does not, a fall below it would indicate further drops that would see it hitting the next big support at $0.5626.
On the resistance side, XRP has hurdles at $0.5992, followed by $0.6137, and $0.6303. If it breaks above the $0.5992 resistance level, it would attract more buyers, causing the price to go higher in the short term.
The longer-range indicators, like the 50-day Exponential Moving Average (EMA), are currently at $0.5869, which gives a strong cushion to the price.
XRP Price
The Relative Strength Index (RSI), meanwhile, is at 45.88, which represents neutral momentum but is slightly skewed towards bearish.
The RSI also suggests that the asset price may remain in a low range until something substantial comes up that shifts the pricing direction.

Key Points:

  • Support Levels: Maintaining the holding on $0.5768 is critical to prevent a jump to $0.5626.
  • Resistance Levels: A breakout above the $0.5992 mark indicates further price movements.
  • RSI: The market is neutral at 45.88 and is now biding its time for any movements.
Over the next two weeks, XRP and the Ripple network will experience a pivotal moment as the SEC’s decision to press charges could raise a lot of speculation on the market and create a slump in XRP’s price.
Investors and traders will be watching closely to see how the legal drama unfolds, with some suggesting that a final decision by the SEC could be a bellwether for the entire cryptocurrency market.
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ABOUT THE AUTHOR See More
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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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