XRP News Today: Will SEC Appeal Delay XRP-Spot ETF Launch and Weigh on Prices?

XRP Joins Broad-based Crypto Sell-off

On Tuesday, October 1, XRP declined by 2.43%, following a 4.60% slide on Monday, closing at $0.5972. Significantly, XRP saw a smaller loss than the broader market, which fell by 4.19% to a total market cap of $2.090 trillion.

Middle East Conflict Impacts XRP Demand

Geopolitical tensions in the Middle East weighed on riskier assets, including XRP. News of an Iranian missile attack on Israel fueled a flight to safety. The US was reportedly discussing a potential response with Israel, raising concerns about an escalation in the Middle East conflict.

US Economic Indicators Temper Bets on Aggressive Fed Rate Cuts

US labor market data tempered expectations of a 50-basis point November Fed rate cut, curbing demand for XRP. JOLTs Job Openings unexpectedly increased from 7.711 million in July to 8.040 million in August, supporting expectations of a soft US economic landing. A less dovish Fed rate path may leave borrowing costs elevated, affecting flows into XRP and the broader crypto market.

Ripple Secures In-Principal Financial Services License

Nevertheless, XRP saw a smaller pullback than the broader crypto market. On Tuesday, Ripple announced,

“We’re delighted to have secured in-principle approval of a financial services license from Dubai Financial Services Authority, unlocking our end-to-end managed payments services in the UAE.”

According to the press release,

“This milestone significantly strengthens Ripple’s global footprint as a regulated entity and enables the introduction of seamless cross-border payment services, including Ripple Payments Direct (RPD), in the United Arab Emirates (UAE).”

Ripple highlighted the advantages of a forward-thinking regulatory environment,

“The comprehensive regulatory framework established by the DFSA, alongside other regulators in the country, has created an environment where innovative crypto firms can thrive.”

Ripple CEO Brad Garlinghouse commented on the news, stating,

“Regulatory clarity is what businesses want, and what consumers need. The UAE understands that.”

XRP-Spot ETF Filing Confirmed

While Ripple made inroads in the Middle East, there was also positive XRP news from the US. Fox Business journalist Eleanor Terrett shared news of Bitwise Invest filing for an XRP ETF in Delaware. Terrett confirmed its authenticity, stating,

“Bitwise Invest’s Chief Investment Officer Matt Hougan has confirmed the filing I shared is authentic.”

An XRP-spot ETF market could boost XRP demand, supporting a possible move toward $1.00. However, an approval of an XRP-spot ETF may depend on the SEC’s plans to appeal rulings from the SEC v Ripple case.

In November 2023, XRP rallied from $0.6410 to $0.7503 on news of BlackRock (BLK) filing for an XRP-spot ETF. However, XRP dropped back below $0.60 as the filing was false.

SEC vs. Ripple: Appeal Window Closing

Investors are awaiting the SEC’s decision on whether to appeal. Speculation on the chances of the SEC appealing the Programmatic Sales of XRP ruling has intensified as the appeal deadline looms.

In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.

A former SEC lawyer highlighted the SEC’s dissatisfaction with the ruling, stating,

“A former SEC lawyer who recently left the agency tells me the SEC will ‘probably’ appeal Judge Torres’s July 2023 ruling concerning the XRP programmatic sales in the Ripple case partly because: ‘everyone over there [at the SEC] truly believes that the decision is wrong, that it’s not good law, and should be appealed.”

The SEC must file an appeal by October 7.

SEC Appeal Plans and XRP Price Trends

Price trends remain dependent on whether the SEC appeals rulings from the Ripple case. If the SEC appeals the Programmatic Sales of XRP ruling, XRP could drop toward $0.40. Conversely, if the SEC does not file an appeal, XRP could target $1.00, mirroring the market’s response to the Programmatic Sales of XRP ruling.

Investors should closely monitor appeal-related news, which could significantly impact XRP price trends.

XRP Price Action

Daily Chart

Can XRP target $0.70 amidst the ongoing threat of an SEC appeal? Despite Tuesday’s drop below $0.60, XRP remains above the 50-day and 200-day EMAs, confirming bullish price trends.

A climb to $0.65 could give the bulls a run at the $0.6609 resistance level and the September 29 high of $0.6655. Furthermore, a return to $0.6655 may signal a move toward the $0.70 level.

Geopolitics, Ripple-related news, SEC activity, and SEC vs. crypto case-related updates require consideration.

Conversely, a fall through $0.60 could give the bears a run at the 50-day EMA and the $0.5739 support level. A break below the $0.5739 support level may bring the 200-day EMA into play.

With a 14-day RSI reading of 54.30, XRP could move to $0.6655 before entering overbought territory.