What SEC’s Latest Appeal Means for Ripple and XRP

Ripple may have abandoned its price rally after the U.S. Securities and Exchange Commission (SEC) filed an appeal against the recent court ruling ordering the company to pay a $125 million fine. This move has re-ignited discussions about XRP’s future, coinciding with Bitwise Asset Management filing for an XRP ETF in Delaware. Let’s break down what this appeal means for XRP price and Ripple.

Understanding SEC vs. Ripple Appeal

The U.S. SEC filed a Notice of Appeal to Judge Analisa Torres’s ruling on August 7, 2024. In the ruling, Judge Torres ordered Ripple to pay the SEC $125 million in fines, significantly less than the SEC’s initial demand of nearly $2 billion.

This recent ruling was the latest game-changing shift in the Ripple-SEC lawsuit after the July 2023 verdict, in which the judge ruled that XRP was not a security when sold to retail investors.

On September 4, Ripple requested the court to allow a stay of the $125 million judgment with the SEC until 30 days after the time to appeal expires or the resolution of any appeal. It appears Ripple suspected the SEC would appeal Judge Torres’s ruling.  

The SEC appeal aims to overturn the decision favouring XRP, meaning the lawsuit has not yet been resolved.

What SEC Appeal Means for XRP Price

Following the news of the SEC appeal, the price of XRP experienced a sharp drop, further exacerbated by the general market drop due to escalating conflict in the Middle East. XRP price today is trading at $0.517, down 13.8% in the last 24 hours. 

The price chart shows the asset broke to the downside of an ascending triangle, invalidating the bullish setup. There is some temporary support of around $0.5, but if selling pressure persists, the XRP price may drop further to the next level of support at around $0.42.

XRP Price Prediction

XRP price has decisively broken below a critical ascending trendline, which had been acting as support since early July.  The $0.65 level was a strong resistance area, as shown by multiple rejections. With this latest rejection, the price is now heading toward lower support levels.

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.

The Relative Strength Index (RSI) is trending below 40, showing oversold conditions, but there’s still room for more downside before a rebound can be expected. The RSI at 30.06 suggests some caution as a bounce might occur once it reaches oversold levels. The On-Balance Volume (OBV) line is also declining, which indicates further potential weakness in buying pressure.

Given the breakdown of the ascending trendline and the clear rejection at resistance, the most likely scenario in the short term is a drop to $0.425. This aligns with the measured move from the recent breakdown.

Ripple’s Response

Ripple CEO Brad Garlinghouse criticized the SEC appeal, calling it misguided and irrational. According to Garlinghouse, the SEC does not want to admit they have lost.

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… https://t.co/1hW7xVSL9b

— Brad Garlinghouse (@bgarlinghouse) October 2, 2024

Further, Ripple CLO Stuart Alderoty expressed his disappointment at SEC’s move but noted that it was not surprising. Ripple plans to continue defending its position to the end as Garlinghouse notes that the FinTech company has already secured the most important win— classification of XRP as a non-security.

SEC Appeals: Timeline and What to Expect Next

Pro-XRP lawyer Fred Rispoli said Ripple will cross-appeal, urging the XRP community to remain calm but refrain from voting for Kamala Harris and Tim Walz as SEC’s company-ending lawsuits would most likely continue under a Harris-Walz administration.

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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Evans Karanja

Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.