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Key Insights:
- XRP slid by 4.10% on Tuesday, ending the session at $0.6856.
- A lack of SEC v Ripple case-related news left XRP in negative territory as the November 9 deadline looms.
- The SEC may have intentions for a contested briefing schedule, laying the foundations for an appeal of the Programmatic Sales ruling.
The Tuesday Overview
On Tuesday, XRP slid by 4.10%. After an 8.14% surge on Monday, XRP ended the day at $0.6856.
Caution Hits XRP Ahead of November 9 Deadline
There were no SEC v Ripple case-related updates for investors to consider on Tuesday. On October 24, the court ordered both parties to jointly agree to a briefing schedule by November 9. The order raised investor hopes of the SEC and Ripple agreeing to remedies relating to the sale of XRP to institutional investors.
However, the lack of progress toward a briefing schedule increases the chance of a contested one. The court would arrange a contested briefing schedule if the two parties cannot settle. Significantly, a contested briefing schedule also raises the possibility of an unfavorable settlement for Ripple.
Investor caution was evident on Tuesday, with XRP falling to a session low of $0.6518 before steadying.
The size of the disgorgement could be a stumbling block if the two sides engaged in remedial talks.
In recent sessions, attorneys Jeremy Hogan and John E. Deaton outlined reasons for Ripple to settle under favorable terms. In contrast, the SEC is eyeing a $770 million disgorgement, which Ripple may not agree to.
On November 5, amicus curiae attorney Deaton raised his doubts about the two parties agreeing to a briefing schedule, saying,
“There are NO current or ongoing settlement talks between Ripple and the SEC.”
However, Deaton pointed out that he had “Zero insider information.”
Uncertainty toward the outcome of the SEC v Ripple case will remain a headwind. There may also be the fear that Ripple may be unable to convince the SEC to accept the Programmatic Sales ruling as part of the settlement.
Contested Briefing Schedule Paves the Way to an SEC Appeal
Failure to settle before the November 9 deadline means the court will arrange a contested briefing schedule. While the size of the penalty will be the focal point, the matter of the Programmatic Sales ruling may also feature. Ripple could agree to a higher penalty if the SEC agrees not to appeal the Programmatic Sales ruling. However, the Programmatic Sales ruling may have more significance for the SEC.
The consensus is that the SEC is fast-tracking the case to appeal the Programmatic Sales ruling. By law, the SEC must wait until the end of the case to contest any court rulings. On October 3, the court rejected the SEC motion to file an interlocutory appeal.
Notably, an interlocutory appeal would stop progress in the SEC v Ripple case until the end of the appeal process. Since the court ruling, the SEC has taken steps to expedite the SEC v Ripple case, suggesting intentions to appeal the Programmatic Sales ruling.
Uncertainty toward the outcome of an appeal would become a headwind for XRP and the broader crypto market.
XRP Price Action
Daily Chart
XRP remained above the 50-day and 200-day EMAs.
An XRP break above the $0.7047 resistance level would support a move to the Monday high of $0.7328.
SEC and Ripple updates on progress toward a settlement will be the focal points on Wednesday.
If the SEC and Ripple fail to agree to a briefing schedule, XRP could fall to $0.65 and bring the $0.6354 support level into play.
The 14-day RSI reading of 74.31 shows XRP remaining in overbought territory. A lack of progress toward a settlement could intensify selling pressure at the $0.7047 resistance level.
4-Hourly Chart
In the 4-hourly Chart, XRP remains above the 50-day and 200-day EMAs, sending bullish price signals.
An XRP break above the $0.7034 resistance level would bring the Monday high of $0.7328 into play.
However, a return to $0.65 would support a move to the 50-day EMA and the $0.6354 support level.
The 4-hourly RSI, with a reading of 58.37, suggests an XRP break above the $0.7047 resistance level before entering overbought territory.
This article was originally posted on FX Empire
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