XRP News: Ripple’s Future Clouded by SEC Appeal, Coinbase Also Under the Lens

Key Insights:

• XRP witnessed a slight gain, ending Monday at $0.5053.
• Ripple CEO amasses a robust legal team for the ongoing SEC battle.
• SEC’s objection to Celsius’ proposal incites tensions with Coinbase.

The Monday Overview

On Monday, XRP gained 0.64%. Partially reversing a 1.12% loss from Sunday, XRP ended the day at $0.5053.

Ripple CEO Brad Garlinghouse Beefs Up His Legal Team

On Monday, attorney Rahul Mukhi filed to appear on behalf of Brad Garlinghouse in the ongoing SEC v Ripple case. The latest move suggested no immediate intentions for a settlement as the parties await a court ruling on the SEC motion for interlocutory appeal.

Mukhi is a partner at the New York offices of Cleary Gottlieb Steen & Hamilton LLP, a global firm specializing in regulatory and dispute resolution, among other areas of expertise.

This was the only SEC v Ripple-related news for the day. Over the near term, the court ruling on the SEC motion for interlocutory appeal remains the focal point. If Judge Analisa Torres grants the SEC motion for interlocutory appeal, the SEC v Ripple case will hit pause until an appeal runs its course.

While there were no court updates from the SEC v Ripple case to consider, SEC v Coinbase (COIN)-related news garnered investor interest.

SEC Targets Coinbase in the SEC v Celsius Case

On Friday, the US Securities and Exchange Commission filed an objection to Celsius proposing a distribution services agreement with Coinbase.

The filing was in response to a September 15, 2023, Plan Supplement filing, which included a Coinbase Prime Broker Agreement, a Custodial Services Agreement, a Master Trading Agreement, and a Distribution and Exchange Term Sheet (Coinbase Agreements).

The SEC argues the Coinbase Agreements “implicate many of the concerns raised in the SEC’s District Court action against Coinbase.”

Notably, the Debtors do not intend for Coinbase to provide brokerage services despite the agreements suggesting otherwise. The SEC has asked the Court not to approve a deal where material items are missing or inconsistent and to submit a new agreement accurately reflecting the agreement with Coinbase.

The SEC filing concluded that it reserves its right to challenge crypto-related transactions.

Coinbase Chief Legal Officer Paul Grewal responded to the SEC filing on X, saying,

“Coinbase is proud to engage with Celsius to distribute crypto back to its customers. I wonder, why would the SEC object to a trusted US public company taking on this role? We look forward to addressing this with the bankruptcy court and undertaking our important role to make Celsius customers whole.”

The latest SEC swipe at Coinbase comes as the crypto community awaits a court ruling on the Coinbase motion to dismiss.

In June 2023, the SEC charged Coinbase for allegedly operating as an unregistered securities exchange, broker, and clearing agency and offering and selling unregistered securities via its staking-as-a-service program.

Crypto-Law US and Amicus Curiae attorney John E. Deaton expects the ruling for the Coinbase MTD to force the SEC to settle the Ripple case.

XRP Price Action

Daily Chart

XRP remained below the 50-day and 200-day EMAs, sending bearish price signals. A return to sub-$0.48 would support an XRP move to the $0.4700 support level. The lingering uncertainty about the ongoing SEC cases continues to cap the upside for XRP and the broader market.

However, a break above the $0.5042 resistance level would give the bulls a run at the 200-day EMA.

The 45.44 14-Daily RSI reading supports an XRP move to the $0.4700 support level before entering oversold territory.

4-Hourly Chart

XRP remains below the 50-day and 200-day EMA, reaffirming bearish price signals. An XRP break above the $0.5042 resistance level and 50-day EMA would support a move toward the 200-day EMA.

However, selling pressure will likely intensify at $0.5050. The 50-day EMA is confluent with the $0.5042 resistance level.

Failure to break above the $0.5042 resistance level would leave sub-$0.48 and the $0.4700 support level in play.

The 14-4 Hourly RSI 45.58 reading supports an XRP return to sub-$0.48 before entering oversold territory.