XRP News Today: XRP Tumbles 9.78% as SEC Files Appeal Against Ripple

XRP Tumbles on SEC Appeal Filing

On Wednesday, October 2, XRP tumbled 9.78%, following a 2.43% loss on Tuesday, closing at $0.5388. Significantly, XRP underperformed the broader crypto market, which declined by 1.17% to a total market cap of $2.065 trillion.

SEC vs. Ripple: The SEC Appeals!

On Wednesday, the SEC filed a Notice of Appeal, just days before the deadline. Attorney James Filan shared the filing. Notably, the Notice of Appeal stated,

“The Securities and Exchange Commission hereby respectfully appeals to the United States Court of Appeals for the Second Circuit from the final judgment entered by this court on August 7, 2024.”

Ripple Chief Legal Officer Stuart Alderoty reacted to the filing,

“The SEC’s decision to appeal is disappointing, but not surprising. This just prolongs what’s already a complete embarrassment for the agency. […] Instead of faithfully applying the law, this agency, under this Chair, continues to engage in litigation warfare against the industry. We are evaluating whether to file a cross appeal.”

Ripple CEO Brad Garlinghouse responded to the filing, saying,

“While we’ll fight in court for as long as we need, let’s be clear: XRP’s status as a non-security is the law of the land today – and that does not change even in the face of this misguided – and infuriating – appeal. (Remember, when the SEC tried unsuccessfully to file an “interlocutory appeal” they made clear they had no intention of challenging XRP’s status as a non-security.)”

Regarding XRP’s status as a non-security, the SEC can appeal rulings in the Ripple case without challenging XRP’s non-security status.

Pro-crypto lawyer James ‘MetaLawMan’ Murphy shared an interview from August 8, where he discussed two focal points for an SEC appeal. These included disgorgement and secondary market trading of tokens.

SEC Appeal and Ripple Cross-Appeal: The Possible Timelines

According to pro-crypto lawyer Fred Rispoli, the likely timeline for the SEC vs. Ripple appeal may be as follows:

1. SEC brief likely due 12/2/24. SEC likely to seek permissible 30 day extension, so will be due shortly after 1/1/25.
2. Ripple will cross appeal. It’s opening brief will be due around the same time.
3. The opposition briefs will be due around 2/2/25. Ripple will likely take its extension, taking that to 3/2/25.
4. Reply briefs will be due end of March 2025.
5. An oral argument will be scheduled for some time September – October 2025.
6. A ruling will be handed down from the 2nd Cir in January 2026 at the earliest, likely March or April though.

SEC Appeal and XRP Price Trends

Investors must now wait for the SEC brief to understand which rulings the agency will challenge. Price trends will likely hinge on speculation about the SEC appeal and the SEC brief. If the SEC appeals the Programmatic Sales of XRP ruling, XRP could drop toward $0.40.

Investors should closely monitor appeal-related news, which could significantly impact XRP price trends. Keep track of SEC actions, which could be pivotal in dictating XRP’s price movements.

XRP Price Action

Daily Chart

Will XRP drop below $0.50 following the SEC’s Notice of Appeal filing? Wednesday’s sell-off dragged XRP below the 50-day and 200-day EMAs, sending bearish price signals.

An XRP return to $0.55 would support a move to the 200-day EMA. Furthermore, a break above the 200-day EMA could give the bulls a run at the $0.5739 resistance level and the 50-day EMA. Selling pressure could intensify at the $0.5739 resistance level as the 50-day EMA is confluent with it.

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

Conversely, a drop below $0.5250 could signal a fall toward the $0.50 level.

With a 14-day RSI reading of 38.04, XRP could drop to $0.50 before entering oversold territory.