Forecast Darkens as Ripple Battles SEC’s Motion for Interlocutory Appeal

However, market sentiment toward the Fed monetary policy outlook had a more lasting impact on buyer appetite. The overnight FOMC meeting minutes raised the chances of a September Fed rate hike on Wednesday.

Tight labor market conditions, elevated wage growth, sticky inflation, and a hotter-than-expected US economy pave the way for a more hawkish Fed policy outlook.

Ripple Files Opposition to SEC Motion to File an Appeal

On Wednesday, Ripple filed its opposition to the SEC motion for leave to file an interlocutory appeal.

The opposition filing highlighted the following points,

• The SEC’s challenge does not raise a pure question of law. Because the questions the SEC presents for interlocutory appeal would require the Second Circuit Court to review this Court’s application of the law to the evidence adduced in (Defendants’) summary judgment motion, an interlocutory appeal (is) inappropriate.
• In addition, the SEC’s questions presented are not controlling issues of law because they apply only to part of the case. This does not present a controlling question of law, as a reversal of this part of the prior decision would neither expedite nor terminate the action.
• To meet the second condition for certification, the SEC must do more than claim the Court’s ruling was wrong.

It is uncertain how long it would take for Judge Torres to rule on the SEC motion for leave to file an interlocutory appeal. Amicus Curiae attorney John E Deaton previously shared his view on a ruling, saying,

“I expect Judge Torres to grant this motion. This will then allow her to even more fully explain her reasoning and to also further make it appeal-proof. It will also allow her an opportunity to address anything Rakoff said.”

As background, Judge Rakoff said that Judge Torres made a mistake in the SEC v Ripple Court ruling when declaring that XRP was not a security when sold on exchanges. Rakoff believed that there is no difference between stocks and institutional sales in terms of being a security.

An increasing degree of uncertainty would be a bearish price scenario. We expect chatter relating to the SEC appeal to influence investor sentiment.

The Day Ahead

An SEC response to the Ripple opposition to the SEC motion would draw interest. While investors may be optimistic about the Second Circuit Court upholding the Judge Torres ruling, a ruling for an interlocutory appeal would be bearish for XRP and the broader market.

SEC v Ripple case-related news will remain the key driver.

However, investors should also monitor SEC activity and US lawmaker chatter, while ETF, Binance, and Coinbase-related news will continue to move the dial. A Court response to the request to dismiss the SEC case against Coinbase would impact XRP and the broader market.

XRP Price Action

This morning, XRP was up 0.65% to $0.5923. A choppy start to the day saw XRP fall to an early low of $0.5797 before rising to a high of $0.5943.

Daily Chart

The Daily Chart showed XRP/USD sitting above the $0.5900 – $0.5750 support band. However, XRP remained below the 50-day EMA while holding above the 200-day, sending bearish near-term but bullish longer-term price signals.

Looking at the 14-Daily RSI, the 36.57 reading reflects bearish sentiment, signaling a fall through the $0.5900 – $0.5750 support band to target sub-$0.56. However, an XRP move through the 50-day EMA would give the bulls a run at the $0.6417 – $0.6530 resistance band.

4-Hourly Chart

Looking at the 4-Hourly Chart, XRP sits above the $0.5900 – $0.5750 support band, with the bears eyeing the lower level of the $0.5900 – $0.5750 support band and Sub-$0.56.

XRP sits below the 50-day and 200-day EMAs, sending bearish near and longer-term price signals. However, an XRP move through the 50-day EMA would give the bulls a run at the 0.6417 – $0.6530 resistance band.

The 31.62 14-4H RSI reading reflects bearish sentiment, with selling pressure outweighing buying pressure. Significantly, the RSI signals a fall through the 0.5900 – $0.5750 support band to target sub-$0.56.