On Friday (May 10), XRP dropped 3.76%, ending the day at $0.5016. The ongoing SEC vs. Coinbase case updates affected buyer interest in XRP. Investors should keep an eye on discussions surrounding the SEC vs. crypto case on Saturday (May 11).
On Friday (May 10), there wasn’t any news about the SEC vs. Ripple case that could change how much people wanted to buy XRP. Investors need to wait until all the necessary steps are finished and the court decides what penalty Ripple will get for breaking US securities laws.
SEC Remedy Brief and Ripple’s Argument: Impact on XRP Investors
The SEC’s response brief didn’t give much hope to investors hoping for a positive outcome. Notably, the SEC kept pushing for a tough penalty and wanted to stop XRP sales to big investors.
The court’s decision on ODL contracts could be crucial. Ripple says these contracts stop making profits or losses.
But, the SEC wants to challenge the ruling on Programmatic Sales of XRP. After a recent court decision involving SEC and Terraform Labs, this appeal could make the crypto market uncertain. In that case, the judge said Terraform Labs and Do Kwon broke the law by not registering TerraUSD and Luna.
As the SEC vs. Ripple case goes on, investors should also watch the SEC vs. Coinbase case. This case’s result might have a bigger effect on digital assets in the US.
SEC Response to Coinbase’s Motion for Interlocutory Appeal
On Friday (May 10), the SEC filed its response to Coinbase’s motion for interlocutory appeal.
In its response, the SEC defended its decision to reject Coinbase’s petition for rulemaking. They argued that just because the Commission has taken actions against crypto asset securities doesn’t mean it has to grant Coinbase’s request. According to the SEC, their authorization of these enforcement actions shows they believe they can bring claims under current laws.
Furthermore, the SEC stated that courts overseeing these cases have agreed with their stance. They emphasized that this is an objective assessment by the judiciary and contradicts Coinbase’s claims that the enforcement actions are an unauthorized power grab and a way for the agency to inflate its importance.
Coinbase’s Legal Challenges and Potential Impact on XRP and the Market
Coinbase lodged a motion for interlocutory appeal after Judge Katherine Failla mostly rejected their motion to dismiss (MTD). Specifically, Judge Failla declined to dismiss allegations against Coinbase for acting as an unregistered intermediary of securities.
In their MTD, Coinbase contended that the SEC lacked the statutory authority to oversee crypto exchanges.
Should the court deny Coinbase’s motion for interlocutory appeal, XRP and the broader market might experience downward pressure on selling. A favorable outcome for the SEC could enhance its ability to regulate the US digital asset sphere through enforcement actions. Moreover, a win for the SEC could reinforce the argument that cryptocurrencies should be classified as securities.
XRP Price Analysis: Bearish Signals and Key Levels to Watch
XRP continues to trade below both the 50-day and 200-day Exponential Moving Averages (EMAs), signaling a bearish trend in its price.
A break above these trend lines could indicate a move towards the 50-day EMA, with further potential to reach the 200-day EMA and the resistance level at $0.5739.
Investors should keep an eye on discussions related to the SEC vs. crypto case for potential market impact.
On the flip side, if XRP drops below $0.50, it may encounter selling pressure, potentially testing the $0.48 support level.
The 14-day Relative Strength Index (RSI) reading stands at 40.96, suggesting that XRP could drop further below $0.48 before reaching oversold territory.
XRP Price Analysis on 4-Hourly Chart: Bearish Trends and Key Levels
On the 4-hourly chart, XRP remains positioned below both the 50-day and 200-day Exponential Moving Averages (EMAs), confirming the presence of bearish price trends.
A potential upward move through these trend lines could give the bulls an opportunity to challenge the 50-day EMA. If successful, breaking above the 50-day EMA might indicate a push towards the $0.5361 resistance level and the 200-day EMA. It’s important to note that selling pressure could strengthen around the $0.5361 resistance level, which coincides with the 200-day EMA. Conversely, if XRP falls below the $0.50 mark, it could signal a decline towards the $0.48 level.
The 14-day Relative Strength Index (RSI) reading, currently at 37.32, suggests that XRP might drop towards the $0.48 handle before entering oversold territory.
⚠️Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.