SEC vs. Ripple Lawsuit Suspense Deepens Amidst Coinbase Battle

On Friday, Coinbase used legal channels to force the SEC to respond to the Coinbase rulemaking petition from 2022. Coinbase filed a mandamus, requesting an SEC response to the petition within 30 days.

The rulemaking petition calls on the SEC to share its views on digital assets and which products it believes are securities. Significantly, the SEC filed charges against Coinbase in June 2023 despite not responding to a rulemaking petition since 2022.

The SEC alleges Coinbase operates as an unregistered securities exchange, broker, and clearing agency. Additionally, the SEC charged Coinbase for the unregistered offering and selling of securities in connection with its staking-as-a-service program.

The mandamus filing comes as the crypto market awaits a court ruling on the Coinbase motion to dismiss (MTD). The crypto community considers the court ruling on the Coinbase MTD pivotal for the US crypto market and the SEC vs. Ripple case.

John E. Deaton, the founder of CryptoLaw US and an amicus curiae attorney, shared his views on the Coinbase MTD. Deaton believes the only chance of the SEC settling the Ripple case rests in the hands of the Court ruling on the MTD.

Deaton shared the reasons for the possible need for the SEC to settle, saying,

“I doubt the Solicitor General would allow an appeal in that scenario, one that could reach the Supreme Court, allowing for the High Court to strip away not only the SEC’s power, but all other federal agencies as well.

XRP Price Actions

Daily Chart

XRP sat below the 50-day and 200-day EMAs, affirming bearish price signals. Notably, the 50-day EMA crossed through the 200-day EMA, sending sell signals.

An XRP return to $0.4850 would support a move to the $0.4700 support level. SEC vs. Ripple and Coinbase case-related news and regulatory chatter will influence buyer appetite.

However, a return to $0.50 would support a breakout from the $0.5042 resistance level to bring the EMAs into play.

The 39.80 14-day RSI reading indicates a break below the $0.4700 support level before entering oversold territory.

4-Hourly Chart

In the 4-hourly Chart, XRP hovers below the 50-day and 200-day EMAs, reaffirming bearish price signals.

An XRP breakout from the 50-day EMA would bring the $0.5042 resistance level and 200-day EMA into play.

However, a drop below $0.48 would support a move toward the $0.47 support level.

The 4-hourly RSI, with a reading of 49.25, indicates an XRP break below the $0.4700 support level before entering oversold territory.