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Key ideas:
- XRP closed at $0.5037 on Saturday, dodging a drop below $0.50 for the first time since late August.
- Ripple Chief Legal Officer Alderoty Responds to SEC Claims of โComplicated Legal Issues.โ
- The Ripple and Coinbase cases are revolutionary for cryptocurrencies in the US.
XRP Saturday Overview
XRP fell 0.26% on Saturday. Following a 0.04% loss on Friday, XRP ended the day at $0.5037. Despite the loss, XRP avoided returning below $0.50 for the first time since August 30.
Crypto Community Reacts to SEC Response Memo Filing
The United States Securities and Exchange Commission (SEC) was the topic of discussion on Saturday. Investors and the crypto community continued to react to the SEC Response Memorandum presentation.
Response Memorandum Allows SEC to Respond to Ripple opposition file with the SEC motion for interlocutory appeal.
Certain sections of the Response Memorandum raised eyebrows. While justifying the appropriateness of an interlocutory appeal, the SEC stated that an interlocutory appeal was necessary to address the defendants' intentions to prolong the case "so that they can continue to sell XRP in the public markets."
The SEC referred to Judge Torres' ruling on programmatic sales and noted that the Court's order on summary judgment presented โcomplicated legal issues.โ
Ripple Chief Legal Officer Stuart Alderoty reacted to the SEC's arguments and said:
โAnother SEC filing, another hypocritical spinโฆ After years of its chairman saying that โthe rules are clear and must be obeyed,โ the SEC now claims that an appeal is urgently needed to resolve these โthorny legal issues.โ
Investors must now await Judge Torres' ruling on the SEC's interlocutory appeal motion. Legal experts expect the appeal process to take between one and two years, during which time, per the SEC's request, the Court would pause the ongoing SEC v Ripple case.
Coinbase and Ripple are pivotal cases for the US crypto market.
The crypto market now has two pending court rulings that could materially alter the US crypto landscape.
A ruling by Judge Failla on Coinbase (CURRENCY) motion dismiss (MTD) could be essential. The SEC alleges that Coinbase operates as an unregistered exchange, broker, and clearing agent.
If Judge Failla, the judge presiding over the SEC v. Coinbase case, grants the MTD, the SEC will face a second ruling that offers judicial clarity on whether cryptocurrencies are securities.
In April, SEC Chairman Gary Gensler classified all cryptocurrencies except btc, as values. At the time, Ripple CLO Alderoty reacted to the statement: saying that Gensler should refrain from participating in law enforcement cases challenging the classification of cryptocurrencies "as it has prejudged the outcome."
A favorable ruling on Coinbase MTD and Judge Torres denying the SEC's interlocutory appeal motion could raise questions about the SEC's oversight of the crypto market. Court rulings that do not classify cryptocurrencies as securities may also force US lawmakers to hastily address the regulatory gap plaguing the US digital asset space.
XRP Price Action
XRPUSD Weekly Chart 100923
daily chart
It was a notably range-bound Saturday session, with XRP moving within a range of $0.0035. Uncertainty surrounding the outcome of the SEC's motion for an interlocutory appeal leaves XRP hovering around the $0.5042 support level. If USD 0.5042 cannot be surpassed, there would be less than USD 0.48 left in play.
However, a break of the $0.5042 support level would leave the trend line and the 200-day EMA in sight. XRP would need court rulings to support a breakout above the trendline. The 200-day EMA converges with the trend line, indicating selling pressure at the $0.5250 level.
The 14-day RSI reading of 35.16 indicates that XRP may return to $0.48 before reaching oversold territory.
XRPUSD Daily Chart 100923
4 hour chart
XRP remains below the 50 and 200 day EMA, reaffirming bearish price signals. However, a break of the $0.5042 support level and the 50-day EMA would bring the trendline into play.
Favorable court rulings would support a breakout of XRP above the trendline to target the 200-day EMA. Uncertainty over the outcome of the SEC cases against Ripple and Coinbase remains an obstacle. Rulings against Ripple and Coinbase would leave the $0.4322 support level in sight.
The 14-4 hour RSI reading of 48.91 shows that XRP has room to fall before entering oversold territory.
XRPUSD Daily Chart 100923
This article was originally published on FX Empire
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