What SEC’s Latest Appeal Means for Ripple and XRP

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As a seasoned crypto investor with over a decade of experience navigating the volatile world of digital assets, I’ve learned to expect the unexpected and adapt quickly to market changes. The latest development in the SEC vs. Ripple saga has certainly shaken up the XRP market, and as an investor, it’s essential to keep a cool head and make informed decisions based on facts rather than emotions.

After the U.S. Securities and Exchange Commission (SEC) chose to contest a court decision that required Ripple to pay a $125 million penalty, there has been renewed debate about the future of XRP. This development comes as Bitwise Asset Management submitted an application for an XRP exchange-traded fund (ETF) in Delaware. Let’s explore the potential implications of this appeal on XRP’s price and Ripple.

Understanding SEC vs. Ripple Appeal

On August 7, 2024, the U.S. Securities and Exchange Commission (SEC) submitted an Appeal Notice following Judge Analisa Torres’ decision. In her ruling, Judge Torres instructed Ripple to pay a fine of $125 million, which is substantially lower than the SEC’s original request for almost $2 billion in penalties.

The latest significant development in the ongoing Ripple-SEC lawsuit has emerged following the July 2023 court decision, where the judge determined that XRP was not considered a security during sales to individual investors.

On September 4, Ripple asked the court to temporarily halt the enforced payment of $125 million due to the SEC, until either the deadline for appealing Judge Torres’ decision has passed or any potential appeals have been resolved. This suggests that Rippe anticipated the SEC might appeal the judge’s ruling.

The goal of the SEC’s appeal is to reverse the ruling that favored XRP, indicating that the legal dispute remains unsettled.

What SEC Appeal Means for XRP Price

After the SEC’s appeal announcement, the value of XRP significantly decreased, worsened by the overall market decline due to the intensifying conflict in the Middle East. Currently, XRP is trading at $0.517, representing a 13.8% drop over the past 24 hours.

What SEC’s Latest Appeal Means for Ripple and XRP

Based on the graph, the asset has fallen below the lower trendline of an upward triangle pattern, which contradicts the bullish outlook. Currently, there’s a small resistance zone approximately at $0.5, but if selling pressure continues, the XRP price could potentially decrease towards the next support level around $0.42.

XRP Price Prediction

The graph shows that the XRP price has fallen below an important trendline that provided support from mid-July. Previously, the $0.65 mark was a significant resistance point, indicated by numerous attempts to break through it without success. With this latest failure to rise above $0.65, the price is moving towards lower support points.

Key Support & Resistance Levels

  • $0.425: Immediate support, marking an 18.97% potential drop from the current level. This target is highlighted by the green zone on the chart.
  • $0.65: Resistance lies at this previous high, which will be tough to break unless significant buying volume returns.

In simpler terms, the Relative Strength Index (RSI) currently stands at 30.06 and suggests that the market may be oversold, meaning it has fallen too quickly. However, this doesn’t mean a rebound is imminent; there might still be some downward movement to come. It’s crucial to exercise caution because an uptick could happen once the RSI reaches the oversold levels. Additionally, the On-Balance Volume (OBV) chart shows a decrease, which signals potential ongoing weakness in buying pressure.

What SEC’s Latest Appeal Means for Ripple and XRP

Based on the downward break of the uptrend line and the strong price rejection at the resistance level, it appears that a short-term decline towards approximately $0.425 is highly probable. This prediction is supported by the measured move derived from the latest downturn.

Ripple’s Response

In simpler terms, Brad Garlinghouse, CEO of Ripple, labeled the SEC’s appeal as unreasonable and off-target. In his view, the SEC is reluctant to acknowledge a loss in their ongoing dispute.

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.

Somehow, they still haven’t gotten the message: they lost on everything that…

— Brad Garlinghouse (@bgarlinghouse) October 2, 2024

Beyond this, Ripple’s General Counsel Stuart Alderoty voiced his dismay at the SEC’s actions but acknowledged that it was not unexpected. Ripple intends to vigorously uphold its stance right until the end, as Garlinghouse points out that the tech firm has already achieved a crucial victory – the classification of XRP as a non-security asset.

SEC Appeals: Timeline and What to Expect Next

Lawyer Fred Rispoli, who supports Ripple, announced that Ripple intends to file a cross-appeal. He encourages the XRP community to stay composed but refrain from voting for Kamala Harris and Tim Walz, as the ongoing SEC lawsuits against Ripple are likely to persist if they assume office.

Rispoli also shared a potential timeline for the SEC v. Ripple case moving forward.

  • SEC Brief Due: December 2, 2024, or January 1, 2025 — The SEC will submit its detailed arguments for the appeal. 
  • Ripple Cross-Appeal Brief — Due at the same time as the SEC brief, in which Ripple responds with its counterarguments.
  • Opposition Briefs: February 2, 2025, or March 2, 2025 — Both parties will submit additional documents opposing each others arguments.
  • Reply Briefs: End of March 2025— Final responses from both sides.
  • Oral Argument: September-October 2025 — Both parties will present their cases in court before the judge.
  • Ruling: January 2026 or March-April 2026 — The court will make a final decision on the appeal

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2024-10-03 13:10