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Key Insights:
- XRP shows resilience by partially reversing a 0.40% loss on Wednesday, ending Thursday at $0.5052.
- Judge Torres, known for her Programmatic Sales ruling, remains at the epicenter of the SEC v Ripple legal entanglement.
- SEC vs. Coinbase: Investors await Judge Failla’s ruling on the Coinbase Motion to Dismiss filing.
Thursday’s Overview of XRP
XRP gained 0.36% on Thursday. Partially reversing a 0.40% loss from Wednesday, XRP ended the day at $0.5052.
SEC Response to Ripple Opposition of Motion for Interlocutory Appeal
The SEC must respond to the Ripple opposition filing to the SEC motion for interlocutory appeal by the end of today.
Failure to respond to the Ripple filing will shift the focus to Judge Torres and a ruling on the SEC motion for interlocutory appeal. While legal experts are optimistic of Judge Torres denying the SEC motion, the seed of doubt leaves XRP range-bound.
However, we expect investors to react to any SEC response. Legal experts will slice and dice the response and share their views on whether the SEC addresses the appropriateness of an interlocutory appeal.
A convincing argument supporting an interlocutory appeal will leave the XRP community on tenterhooks. It is unclear how long Judge Torres will deliberate before giving her ruling.
CryptoLaw founder and Amicus Curiae attorney John E. Deaton believes Judge Torres will take the opportunity to cement her Programmatic Sales ruling and address criticism from Judge Rakoff, the presiding Judge in the concluded SEC v Terraform Labs case.
Considering the likely impact of the ruling on XRP and the US digital asset space, Judge Torres may take her time to deliberate.
Could the Coinbase Motion to Dismiss the Influence Judge Torres Ruling?
While the SEC must respond to the Ripple filing by today, investors await a ruling on Coinbase (COIN) motion to dismiss (MTD). Judge Failla is the presiding Judge in the SEC v Coinbase case.
In August, Republican Senator Cynthia Lummis and other interested parties filed Amicus Curiae briefs calling on presiding Judge Failla to dismiss the case.
In June, the SEC alleged that Coinbase operated as an unregistered securities exchange, broker, and clearing agent. Other charges included the unregistered offering and selling of securities relating to staking products.
A successful motion to dismiss could take the pressure off Judge Torres. Judge Failla could dismiss the case for failing the Howey test. Such a ruling would bolster the Programmatic Sales of XRP ruling.
The Friday Session
We expect the SEC response to the Ripple opposition filing to be the focal point. However, investors should track SEC v Coinbase case-related updates. A Judge Failla ruling would have more impact on investor sentiment.
Beyond the two marquee cases, Crypto-Spot ETF-related news will also influence. Progress toward a spot ETF market would support the broader market. ETFs attract institutional and retail investors. An influx of sticky institutional money should soften the volatility associated with the crypto market.
XRP Price Action
Daily Chart
Sideways moves left XRP holding above the $0.5042 support level. A breakout from the $0.5042 support level would bring the trend line and 200-day EMA into play. However, XRP investors must respond favorably to the SEC filing and SEC v Coinbase news to break above the trend line.
The 200-day EMA is confluent with the trend line, reflecting stern selling pressure at $0.5235.
Negative sentiment toward the SEC filing would bring sub-$0.48 into play. However, barring Court rulings, we expect XRP to steer clear of the $0.4322 support level.
Considering the 36.74 14-Daily RSI reading, XRP could revisit sub-$0.48 before entering oversold territory.
4-Hourly Chart
A breakout from the 50-day EMA would give the bulls a run at the trend line. However, investors must respond favorably to the SEC filing to support a break above the trend line.
A return to $0.52 would bring the $0.5470 resistance level and the 200-day EMA into play. However, we expect increased selling pressure at $0.5470, with the 200-EMA confluent with the $0.5470 resistance level.
Failure to break out from the 50-day EMA would leave sub-$0.48 in play.
The 14-4H RSI 55.63 reading indicates XRP has room to run before entering overbought territory.
This article was originally posted on FX Empire
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