Important Points:

  • The overall market capitalization of cryptocurrencies drops to $2.041 trillion as XRP loses 3.40% in the midst of a wider sell-off.
  • Talk of an appeal in the SEC v. Ripple case is heating up; this could effect the stability of the price of XRP.
  • The SEC’s decision to file an appeal will determine how much XRP will cost; in the upcoming weeks, volatility is predicted.

XRP Falls During a Cryptocurrency Sell-Off

After dropping 2.20% the day before, XRP fell 3.40% on Tuesday, August 27, finishing at $0.5674. XRP tracked the overall decline in the cryptocurrency market, which experienced a 5.30 percent decline in market capitalization to $2.041 trillion.

Better than anticipated Investor expectations on repeated 2024 Fed rate cuts were put to the test by US economic data, which sparked a widespread sell-off in cryptocurrencies. On Tuesday, investor sentiment was impacted by US consumer confidence. Investor concerns about a hard US landing and the necessity of swift Fed rate cuts to support the economy were probably allayed by an unanticipated surge in confidence.

SEC vs. Ripple: Talk of an appeal heats up ahead of the SEC closed meeting

It has been three weeks since August 7th, when Judge Analisa Torres rendered the final decision in the SEC vs. Ripple case. Regarding whether or not to file an appeal, the SEC has not said anything.

Pro-crypto attorney Fred Rispoli reopened the appeals debate on Tuesday by posing the question,

“Can any securities lawyers provide me with an answer on the likelihood of an SEC vs. Ripple appeal? If Ripple prevails on all fronts against the SEC, would the SEC be required to pay statutory interest on it as well?”

James Farrell, general counsel at AscendEX and a former member of the SEC,

“Saying that typically Ripple would post a bond securing the decision and delay payment while an appeal was pending. The cost of the bond would normally be assessed against the SEC in the event of a loss as part of the appeal’s costs under FRAP 39 (at the 2d Circuit is discretion, just like any bill of costs).”

Farrell continued,

“Even more complicated if the Second Circuit remands for a new trial—for instance, if it determines that certain factual concerns should have prevented the award of summary judgment. All of this presupposes a cross-appeal. Because if Ripple does not file a cross-appeal, it is essentially admitting that it owes $125 million and that the appeals court is powerless to address matters that are not before it.”

Farrell’s remark emphasized the danger the SEC would run if it decides to appeal the Ripple case’s decisions. The decision that Ripple sold unregistered XRP in violation of US securities laws may be contested by a cross-appeal filed by Ripple. A cross-appeal might undermine the SEC’s regulatory strategy by creating a precedent for XRP sales.

A SEC Appeal Could Happen Soon?

On Thursday, August 29, the SEC will have a secret meeting where the Ripple matter may come up for discussion. An appeal might compel Ripple to file a cross-appeal and drag out the litigation until 2025.

Early October is when the 60-day appeal deadline finishes, therefore the appeals process will go on even after the US presidential election. It might be necessary for the SEC to think about the potential effects of an administration change.

The Future of XRP Price Depends on SEC Action

The SEC’s preparations for an appeal will determine price movements. The SEC’s appeal might cause XRP to drop below $0.40. On the other hand, if the SEC decides not to appeal the case’s decisions, XRP may aim to recover to $1.00. The July 2023 Programmatic Sales of XRP judgment caused XRP to spike from $0.4696 to a high of $0.9327.

Investors should be on the lookout because news about appeals will probably affect XRP price movements. Keep yourself informed about XRP and the wider cryptocurrency industry by following our most recent news and analysis.

Price Action of XRP

Every Day Schedule

Bullish price indications were sent by XRP as it stayed above the 200-day and 50-day moving averages.

A bounce back to $0.6000 might be supported by a breakout from the 50-day EMA. Moreover, a bounce back to $0.60 would portend a move up toward the resistance level at $0.6609 and the high of $0.6434 on August 7.

Updates pertaining to SEC vs. crypto cases and SEC activity should be taken into account.

On the other hand, a decline beneath the 200-day and 50-day EMsA would indicate a positive trend reversal and a potential decline below $0.50.

At 46.54 on the 14-day RSI, XRP might drop below $0.50 before going into oversold territory.