XRP surges to $0.58 amid SEC’s bid for delay in Ripple lawsuit


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  • XRP price climbed to $0.58, inching closer to $0.60 target on Wednesday. 
  • The SEC has requested a change to the remedies briefing deadlines in its lawsuit against Ripple. 
  • Ripple’s deadline to file an opposition brief could be extended to April 22, 2024. 

XRP price rallied on Wednesday in response to the Securities and Exchange Commission’s (SEC) push to delay the remedies briefing deadline in its lawsuit against the payment remittance firm. 

The next key date for the SEC v. Ripple lawsuit, following the delay requested by the SEC is April 22, 2024. 

Also read: XRP price wipes out losses, Ripple plans blockchain roadmap reveal for 2024

Daily Digest Market Movers: Ripple lawsuit faces further delay

  • The SEC has revealed plans to delay the remedies briefing deadlines in its lawsuit against Ripple. 
  • Prior to the SEC’s request, Ripple had asked for an extension of the deadline for the discovery phase, in order to prepare the documents required by the regulator. 
  • The SEC’s push for delay implies that the regulator’s opening brief deadline will be extended to March 22, 2024 while Ripple’s deadline to file its opposition brief will be extended to April 22, 2024. 
  • The regulator’s deadline to file a reply to Ripple’s opposition brief will be extended to May 6, 2024. 
  • While the SEC’s bid for delay prolongs the legal battle between the payment remittance firm and the agency, it has likely catalyzed gains in XRPLedger’s native token, XRP. 
  • XRP price climbed on Wednesday, inching closer to its $0.60 target. 

Technical Analysis: XRP price could hit $0.60 target in its uptrend 

XRP price climbed to $0.58 on Wednesday. The altcoin is rallying closer to its $0.60 target. Bitcoin price sustained above the $57,000 level on Wednesday and the SEC bid to delay the remedies brief filing in the lawsuit against Ripple. These two factors are likely catalyzing XRP price gains. 

XRP price  is likely to rally towards its $0.6405 target, the 2024 high for the altcoin. In its uptrend XRP price faces resistance at the 78.6% Fibonacci retracement of the decline from the 2024 peak, at $0.6073. A successful break past this level could push XRP towards a new yearly high. 

The Moving Average Convergence/ Divergence (MACD) indicator, and the Awesome Oscillator (AO) support XRP price gains and show that the uptrend is intact. 

XRP

XRP/USDT 1-day chart 

A daily candlestick close below the 50% retracement at $0.5629 could invalidate the bullish thesis for XRP and send the altcoin to support at the 38.2% Fibonacci retracement at $0.5446. 

SEC vs Ripple lawsuit FAQs

It depends on the transaction, according to a court ruling released on July 14:

For institutional investors or over-the-counter sales, XRP is a security.
For retail investors who bought the token via programmatic sales on exchanges, on-demand liquidity services and other platforms, XRP is not a security.

The United States Securities & Exchange Commission (SEC) accused Ripple and its executives of raising more than $1.3 billion through an unregistered asset offering of the XRP token.

While the judge ruled that programmatic sales aren’t considered securities, sales of XRP tokens to institutional investors are indeed investment contracts. In this last case, Ripple did breach the US securities law and will need to keep litigating over the around $729 million it received under written contracts.

The ruling offers a partial win for both Ripple and the SEC, depending on what one looks at.

Ripple gets a big win over the fact that programmatic sales aren’t considered securities, and this could bode well for the broader crypto sector as most of the assets eyed by the SEC’s crackdown are handled by decentralized entities that sold their tokens mostly to retail investors via exchange platforms, experts say.

Still, the ruling doesn’t help much to answer the key question of what makes a digital asset a security, so it isn’t clear yet if this lawsuit will set precedent for other open cases that affect dozens of digital assets. Topics such as which is the right degree of decentralization to avoid the “security” label or where to draw the line between institutional and programmatic sales are likely to persist.

The SEC has stepped up its enforcement actions toward the blockchain and digital assets industry, filing charges against platforms such as Coinbase or Binance for allegedly violating the US Securities law. The SEC claims that the majority of crypto assets are securities and thus subject to strict regulation.

While defendants can use parts of Ripple’s ruling in their favor, the SEC can also find reasons in it to keep its current strategy of regulation by enforcement.

The court decision is a partial summary judgment. The ruling can be appealed once a final judgment is issued or if the judge allows it before then. The case is in a pretrial phase, in which both Ripple and the SEC still have the chance to settle.