XRP News Today: Crypto Market Slump Hits XRP – US Election and SEC Appeal Weigh In
XRP Drops Below $0.52 Amid Broader Crypto Sell-Off
On Wednesday, October 23, XRP declined by 1.39%, following a 2.24% loss from the previous session to close at $0.5255.
XRP tracked the broader crypto market, which fell 1.45% on Wednesday to a total market cap of $2.242 trillion.
US Presidential Election jitters drove 10-year US Treasury yields higher, impacting demand for riskier assets, including crypto. Falling bets on a December Fed rate cut contributed to the crypto market pullback.
Elon Musk and the XRP Ledger
On Wednesday, the crypto community continued discussing recent comments by Elon Musk regarding XRP Ledger. Responding to a question regarding Financial institutions using XRPL in the future, the Tesla (TSLA) CEO said,
“This is definitely not an endorsement or lack of endorsement for XRP, but I do think crypto, by its very nature, helps with individual freedom.”
As Ripple prepares for a lengthy battle with the SEC in the US appellate courts, the company continues pushing for bipartisan support for cryptos. Ripple CEO Brad Garlinghouse remarked on Elon Musk’s comments noting that candidates who ignore crypto and blockchain tech could experience a sharp loss of voter support.
The latest election polls indicate that Donald Trump could win the US Presidential Election. While investors may consider Trump’s stance on crypto bullish, his broader policies could drive inflation, potentially affecting the Fed rate path.
SEC vs. Ripple: Opening Brief Crucial for XRP
On Wednesday, the XRP drop below $0.52 signaled a sharp pickup in volatility. XRP last fell below $0.52 on October 3, following the SEC’s Notice of Appeal.
Investors are closely tracking updates on the SEC’s appeal against Ripple, especially as the agency prepares to file its opening brief.
The opening brief could be crucial for XRP price trends as it details the SEC’s legal theories in challenging rulings, including the Programmatic Sales of XRP ruling. Furthermore, the opening brief presents arguments against rulings without rebuttal and creates a first impression with the judge.
The SEC’s opening brief and arguments against the Programmatic Sales ruling could allow pro-crypto lawyers to gauge the likelihood of a successful appeal. XRP volatility increased substantially in response to filings leading to the July 2023 Summary Judgment and August 2024 Final Judgment.
XRP surged to a July 2023 high of $0.9327 following the Summary Judgment, but concerns over a potential SEC appeal contributed to XRP dropping to an August 2023 low of $0.4367.
The SEC must file its opening brief by December 2, 2024, but may seek a 30-day extension.
XRP Price Outlook: The Fed Rate Path and US Election Loom
Before the SEC’s opening brief, investors must consider the US Presidential Election on November 5 and the Fed interest rate decision on November 7. If Trump wins, he could fire the SEC Chair before the Fed’s November interest rate decision.
Speculation about the SEC dropping the appeal could intensify if Trump wins and fires the SEC Chair. XRP could mirror the July 2023 rally if the SEC withdraws its appeal. Conversely, XRP may drop below $0.50 if the SEC gives convincing arguments in appealing the Programmatic Sales ruling.
Outlook
Investors should track SEC appeal-related developments and US Presidential Election news, which could significantly influence XRP price trends. Stay informed with our latest news and analysis to better manage your exposures to XRP and the broader crypto market.
XRP Price Action
Daily Chart
XRP sits well below the 50-day and 200-day EMAs, affirming bearish price signals.
A return to $0.5350 could support a move toward the 200-day and 50-day EMAs. Furthermore, a breakout from the 50-day EMA may bring the $0.5739 resistance level into play.
US Presidential Election news, Ripple case-related news, and SEC vs. crypto case-related updates require consideration.
Conversely, a break below the $0.50 level could signal a fall toward the trend lines.
With a 14-day RSI reading of 39.76, XRP could break below $0.50 before entering oversold territory.
