XRP Lawsuit Update: Ripple Mulls Cross-Appeal as SEC Faces Backlash – 11% Drop

Ripple Executives Respond to SEC’s Appeal

Ripple CEO Brad Garlinghouse and CLO Stuart Alderoty were quick to criticize the SEC’s decision to pursue the appeal. In his response, Garlinghouse accused the commission of squandering taxpayers’ funds, labeling it a “losing fight.” He emphasized that XRP’s status as a non-security for programmatic sales remains unchanged, despite the SEC’s move to appeal.

Brad Garlinghouse’s X post stated: “If Gensler and the SEC were rational, they would have moved on from this case long ago. It certainly hasn’t protected investors and instead has damaged the credibility and reputation of the SEC.”

He also highlighted the timing of Gurbir Grewal’s resignation, the SEC’s Director of the Division of Enforcement, who stepped down an hour before the SEC filed its appeal. The leadership shake-up has fueled speculations about the future direction of the SEC’s enforcement strategy in the cryptocurrency industry.

SEC Files Notice of Appeal in Case Against Ripple

A federal judge ruled last year that the SEC had not made its case that Ripple violated securities law by selling XRP to retail customers through exchanges.https://t.co/RcOjVJhTI0

— 🇳🇱 MackAttackXRP® 🇳🇱 (@MackAttackXRP) October 3, 2024

XRP Price Takes a Hit as Legal Uncertainty Grows

The SEC’s notice of appeal has had a noticeable impact on XRP’s market performance. The token’s price dropped over 11% from its 24-hour high, trading at $0.5331 at press time.

This sharp decline reflects market participants’ concerns over the extended legal uncertainty. However, some analysts remain optimistic about XRP’s long-term outlook.

Despite the ongoing legal drama, there are signs of positive sentiment. Cryptocurrency commentator CredibleCrypto highlighted a recent filing by Bitwise for an XRP exchange-traded fund (ETF), suggesting that XRP could be the next major digital asset to receive ETF approval after Bitcoin and Ethereum.

He stated in a tweet, “Yes, I’m aware of the SEC appeal on the @‌Ripple case, but… @‌BitwiseInvest just filed for an $XRP ETF. XRP will be the next approved ETF after $BTC and $ETH in my opinion.”

Key Takeaways:

• Ripple’s CLO Stuart Alderoty criticized the SEC’s decision to pursue the lawsuit further.

• Ripple is considering a cross-appeal that could challenge key aspects of the ruling.

• XRP price dropped 11% following the SEC’s notice of appeal, highlighting market uncertainty.

Daily Technical Outlook: XRP/USD – October 3, 2024

XRP is currently trading at $0.53736 after staging a slight recovery from a recent drop that saw the price hit a low of $0.52376. The downturn came amid mounting legal uncertainties surrounding Ripple’s ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC).

The sharp decline retraced down to the 38.2% Fibonacci level at $0.57370, which has now become a critical resistance point for any further upside movement.

Immediate support is seen at $0.52376, while a break below this level could expose the next support at $0.51349. On the upside, immediate resistance stands at $0.55500, followed by $0.57327.

The 50-day Exponential Moving Average (EMA), positioned at $0.59526, remains well above the current price, reinforcing a bearish trend in the short term.

The Relative Strength Index (RSI) sits at 30.94, indicating oversold conditions, which could potentially attract buyers if support holds.

🚨 SEC Appeals Ripple Ruling!

The SEC is challenging the court’s decision, arguing it conflicts with Supreme Court precedent.
Ripple’s CEO, Brad Garlinghouse, remains defiant, saying XRP’s status as a non-security is “the law of the land.” 🏛️⚖️ #Ripple #SEC #XRP #Crypto… pic.twitter.com/OZiBoWOGr2

— Crypto B 👑 (Never DM first) 🇧🇷 (@TheCrypto_B) October 3, 2024

Key Insights:

• Fibonacci Retracement Levels: XRP bounced off the 38.2% Fibonacci retracement at $0.57370 but remains below key resistance levels.

• Oversold RSI: The RSI at 30.94 suggests a potential buying opportunity, with conditions ripe for a short-term rebound.

• Bearish Trend Reinforced: XRP remains below its 50-day EMA at $0.59526, signaling continued selling pressure.

Conclusion

XRP’s ability to maintain support at $0.52376 will be crucial in determining its near-term direction. A successful hold above this level could pave the way for a rebound toward $0.55500, while a break below may trigger a further decline toward $0.51349 or lower.

Beyond technical factors, Ripple’s decision on whether to pursue a cross-appeal will play a pivotal role in shaping the outcome of its ongoing lawsuit with the SEC.

While legal uncertainty has weighed heavily on XRP’s price, the potential for regulatory clarity and growing institutional interest—particularly through the approval of an XRP exchange-traded fund (ETF)—could serve as a powerful catalyst for a long-term bullish trend.