Wednesday's summary
On Wednesday, XRP gained 2.01%. Partially reversing a 3.73% drop from Tuesday, XRP ended the day at $0.6347.
It remains a pivotal moment for the US digital asset space. Progress towards a BTC spot ETF market continues to raise bets on a bullish 2024 for the cryptocurrency market. However, the SEC cases against Ripple and Coinbase (CURRENCY) remain obstacles for the cryptocurrency market. Important dates are approaching and investors are likely to respond to the outcome of the respective cases.
In it SEC vs. Coinbase case, Judge Katherine Failla will hear oral arguments on January 17, 2024. Importantly, oral arguments will relate to Coinbase's motion to dismiss (BAT). Coinbase filed an MTD in August, arguing that the SEC has no legal authority to regulate crypto exchanges. If Judge Failla grants the MTD, the SEC may alter its course in regulating the US digital asset space.
For the SEC, the ongoing case against Ripple could be another headache. Discovery related to the remedies will end on February 12, 2024. Following the discovery process, the SEC and Ripple must file briefs related to the remedies. The briefs will present legal arguments regarding the acceptable penalty for illegal sales of XRP to US institutional investors.
While the SEC will try to set an example with a hefty fine, the focus will likely remain on programmatic sales. decision. Investors are betting that the SEC will appeal the ruling on programmatic sales. An appeal would create more crypto uncertainty. The appeal process could take SEC case against Ripple until 2025.
However, the courts could prove vital to the US crypto market. Anti-cryptocurrency rhetoric from Capitol Hill advances discussions about the United States presidential elections. Senator Elizabeth Warren and the Law against money laundering of digital assets increased attention on the US presidential election.
Senator Warren vs. Senator Lummis and the US Crypto Market
A clean sweep of the Democratic Party could pave the way for Senator Warren's bill to impact the US digital asset space. Significantly, the SEC could gain legal authority to regulate the US crypto market.
By contrast, a sweeping GOP victory could support Lummis and Gillibrand's Responsible Financial Innovation Act. Senator Cynthia Lummis and Kirsten Gillibrand archived the Responsible Financial Innovation Law in 2022.
The Responsible Financial Innovation Act supports innovation while also aiming to protect investors. The bill would give the CFTC greater authority to regulate the digital asset space.
XRP Price Action
daily chart
XRP stayed above 50 and 200 days It's notaffirming bullish price signals.
A return of XRP to the $0.65 level would give the bulls a run towards the $0.7047 resistance level.
On Thursday, the focal points will be news related to BTC-spot ETFs, US regulatory activity, and conversations from US lawmakers.
However, a break below the $0.6354 support level would put the 50-day EMA and below $0.60 into play.
The 14-day RSI reading of 55.31 indicates a move of XRP to the resistance level of $0.7047 before entering overbought territory.
4 hour chart
On the 4-hour chart, XRP settled above the 50- and 200-day EMAs, reaffirming bullish price signals.
A move of XRP to the $0.65 level would bring the $0.7047 resistance level into play.
However, a break below the $0.6354 support level would give the bears a run towards the 50 and 200 day EMAs.
The 4-hour RSI, reading 59.24, indicates a move of XRP to the resistance level of $0.7047 before entering overbought territory.
