XRP is back above $0.55 with uncertainty over SEC appeal in lawsuit against Ripple

XRP exchanges hands above $0.55 on Thursday, gains nearly 1%.
Market participants digest the confusion over a missed appeals deadline in SEC vs. Ripple lawsuit.
SEC spokesperson confirms that the appeal will proceed normally and the documents with legal arguments will be filed publicly soon.

Ripple (XRP) gains on Thursday as traders digest the uncertainty in the Securities & Exchange Commission’s (SEC) appeal in the lawsuit. A spokesperson from the US-based financial regulator has confirmed that the process has been followed and the relevant documents will be available publicly soon.

XRP traded at $0.5507 at the time of writing on Thursday.

Daily Digest Market Movers: SEC’s appeal to go as planned in Ripple lawsuit

The SEC made headlines early on Thursday for confusion over the deadline to file an appeal against the final ruling in the Ripple lawsuit.
The SEC filed an appeal against the $125 million settlement and raised questions about the Howey Test’s application to XRP. This test is used to identify whether a token is a security and whether federal securities laws apply to it within the SEC’s jurisdiction.
Ripple’s Chief Legal Officer, Stuart Alderoty, and CEO Brad Garlinghouse slammed the SEC for appealing the August 2024 ruling.
Confusion over the deadline for filing an appeal raised the question of whether the SEC’s appeal is valid and will be accepted in the lawsuit.
A Fox Business journalist, Eleanor Terret, said on the X social media site that an SEC spokesperson has affirmed that the appeals process is moving forward as planned and the documents will soon be publicly available.

NEW: Heard back from the @SECGov this morning.

According to a spokesperson:

“The appeal is proceeding normally, and the documents will be filed publicly soon."
— Eleanor Terrett (@EleanorTerrett) October 17, 2024

Technical analysis: XRP eyes 8% gain in its path to $0.60 target

XRP has been in a downward trend since July 2023, as seen in the XRP/USDT daily chart. The altcoin could climb another 8.42% to hit its psychologically important level at $0.60. This is a key level for several XRP holders since the token has managed to break through on a few occasions since May 2024.

The $0.60 level is considered a hurdle in the path to further gains, toward the $0.7429 target that coincides with the July 2023 peak for XRP.

The Moving Average Convergence Divergence (MACD) indicator shows green histogram bars after a series of red histogram bars. The trend reversed recently, and there is underlying positive momentum in the altcoin’s price.

XRP/USDT daily chart

If Ripple closes below the $0.5000 level on Thursday, it would invalidate the bullish thesis. This is a level where XRP has swept liquidity on several occasions. Therefore, it is a key support for the altcoin.

Another key support is the July 5 low of $0.3823. If XRP’s correction ensues, the altcoin could dip to this level before attempting a recovery.

Crypto ETF FAQs

What is an ETF?

An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.

Is Bitcoin futures ETF approved?

Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.

Is Bitcoin spot ETF approved?

Yes. The SEC approved in January 2024 the listing and trading of several Bitcoin spot Exchange-Traded Funds, opening the door to institutional capital and mainstream investors to trade the main crypto currency. The decision was hailed by the industry as a game changer.

Which are the pros and cons of crypto ETFs?

The main advantage of crypto ETFs is the possibility of gaining exposure to a cryptocurrency without ownership, reducing the risk and cost of holding the asset. Other pros are a lower learning curve and higher security for investors since ETFs take charge of securing the underlying asset holdings. As for the main drawbacks, the main one is that as an investor you can’t have direct ownership of the asset, or, as they say in crypto, “not your keys, not your coins.” Other disadvantages are higher costs associated with holding crypto since ETFs charge fees for active management. Finally, even though investing in ETFs reduces the risk of holding an asset, price swings in the underlying cryptocurrency are likely to be reflected in the investment vehicle too.

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