San Francisco, CA – The Securities and Exchange Commission (SEC) might settle the Ripple case if the Office of the Inspector General (OIG) finds that the SEC acted improperly. This settlement would also put an end to the SEC’s plan to appeal the ruling on the Programmatic Sales of XRP, which caused a significant drop in XRP value.
Last July, Judge Torres ruled that the programmatic sales of XRP did not meet the third prong of the Howey Test. In response to this ruling, the value of XRP soared to a high of $0.9327. However, concerns about the SEC’s intent to appeal the Programmatic Sales ruling caused XRP to plummet below $0.50.
If a settlement is reached, XRP is expected to respond positively. At the same time, investors are eagerly awaiting the findings of the OIG investigation. Additionally, a ruling in the SEC v Coinbase case could also have implications for the Ripple case.
Coinbase filed a Motion to Dismiss all SEC charges against them, arguing that the SEC lacks the authority to regulate cryptocurrency exchanges. Judge Katherine Failla heard oral arguments in January, and legal experts believe that Coinbase presented a strong case that offers a better definition of an investment contract.
John E Deaton, an Amicus Curiae attorney and candidate for the US Senate, believes that if the Court grants the Coinbase Motion to Dismiss, the SEC would be more likely to settle the case against Ripple. This settlement would have significant implications, potentially paving the way for XRP-spot ETF applications. However, the SEC is unlikely to approve these applications if they plan to appeal the Programmatic Sales ruling.
Notably, the price of XRP may be impacted by these developments. Currently, XRP is trading above the 50-day and 200-day EMAs, indicating bullish signals. If XRP breaks above the resistance level of $0.6354, it could reach the high of $0.6689 seen on March 5. On the other hand, a drop below the $0.62 handle may bring the support level of $0.5835 into view.
Considering the 14-day RSI reading at 59.88, it suggests that XRP may break above the March 5 high before entering overbought territory. These price trends are also reflected in the 4-hourly chart, where XRP is holding above the 50-day and 200-day EMAs. If XRP breaks out from the resistance level of $0.6354, it could soar to the March 5 high of $0.6692.
However, a break below the 50-day EMA would bring the $0.5835 support level and the 200-day EMA into play. The 4-hourly RSI, with a reading of 51.21, indicates a potential breakout above the March 5 high before entering overbought territory.
In conclusion, the outcome of the OIG investigation and the ruling in the SEC v Coinbase case could have significant implications for the Ripple case and the future of XRP. Investors and traders will closely monitor these developments as they may impact the value and trading opportunities of XRP.