On Friday, August 9, XRP experienced a significant decline, dropping by 5.91% to close the session at $0.5808. This downturn wiped out the 2.90% gain it made on Thursday, August 8, and outpaced the broader market’s 1.67% decline, which saw the total market cap fall to $2.081 trillion.
Speculation Grows Over SEC Appeal in Ripple Case
As the weekend approached, speculation regarding a potential appeal by the US Securities and Exchange Commission (SEC) against recent rulings in the SEC vs. Ripple case intensified. On Wednesday, Judge Analisa Torres ordered Ripple to pay a civil penalty of $125 million for violating US securities laws by selling unregistered XRP to institutional investors. The court also granted the SEC’s request for an injunction, prohibiting further XRP sales to institutional investors.
XRPUSD Reaction to July 2023 Rulings
This ruling dashed hopes of a settlement and raised the possibility of an SEC appeal against the earlier Programmatic Sales of XRP ruling. In July 2023, Judge Torres ruled that these sales did not meet the criteria of the Howey Test, a key point of contention in the case.
Ripple’s Chief Legal Officer, Stuart Alderoty, responded to the verdict by expressing confidence, stating, “We’re feeling really good about it […] The court soundly rejected the idea that a token itself, like XRP, can be considered a security.” Alderoty confirmed that Ripple would pay the fine within 30 days and expressed hope that the US administration would “turn the page on their war on crypto.”
Potential Appeal Looms Over XRP
However, uncertainty remains as the SEC considers its next move. In August 2023, the SEC filed a Motion for Interlocutory Appeal against the Programmatic Sales ruling, which was rejected by Judge Torres in October 2023. The SEC now has 60 days to decide whether to pursue a full appeal.
XRPUSD 100824 Weekly Chart
An appeal could negatively impact XRP demand and price trends. While XRP recently climbed to a high of $0.6437 following the final verdict, fears of an appeal had previously caused the cryptocurrency to dip below $0.50.
XRP Price Outlook
XRP remains above the 50-day and 200-day Exponential Moving Averages (EMAs), indicating a bullish trend. A return to $0.60 could lead to a move towards the $0.6437 resistance level, with a potential breakout reaching $0.6609. However, a break below the $0.5739 support level could signal a decline in the EMAs.
Investors should stay vigilant as the SEC’s actions and any developments in the Ripple case could significantly impact XRP’s price trajectory.
