Key Insights:

• XRP experienced a 1.12% decline on Friday, closing the session at $0.6593.
• Activity related to the SEC v Ripple case has put XRP on the defensive.
• The possibility of the SEC appealing the Programmatic Sales ruling remains a challenge for XRP.

The Friday Overview

On Friday, XRP fell by 1.12%. After experiencing a 3.00% decline on Wednesday, XRP ended the day at $0.6593.

SEC v Ripple Anxiety Resurfaces After the November 9 Joint Filing

Investors showed limited reaction to the latest news related to the SEC v Ripple case. The SEC and Ripple jointly filed a briefing schedule, leaving the court responsible for issuing a scheduling order.

According to the briefing schedule, the discovery process for remedies will begin on the date of the court scheduling order.

Notably, the SEC intends to obtain remedies-related discovery that occurred after the December 2020 complaint. The SEC argues that this post-dated discovery is relevant for “injunctive and monetary remedies.”

The SEC aims to impose a penalty of approximately $770 million. The remedies-related discovery will likely include Ripple’s financial statements. The SEC may attempt to restrict business expense deductions from total earnings.

Attorney Jeremy Hogan recently expressed his views on the potential outcomes of a settlement. Hogan believes that the SEC could estimate disgorgement damages and place the burden of proof on Ripple to refute the damages. Hogan also noted that the SEC may argue that Ripple incurred expenses that contributed to further violations, supporting the argument to exclude them from business expenses.

Hogan, along with amicus Curiae attorney John E. Deaton, believes that the penalty will be significantly less than $770 million.

Investors will have insight into the SEC’s strategy to obtain a substantial disgorgement in the coming months. The remedies-related discovery period extends for 90 days, taking the proceedings into 2024.

Attorney Jeremy Hogan made an observation amidst the speculation on whether XRP is classified as a security or not. Hogan stated, “How rare is it that the SEC sues a company for selling an unregistered security and during the litigation the price of the security increases? Very rare. And that might be another indication that the security is… not a security.”

Ripple Remains Resolute in Battle Against the SEC

This week, Ripple CEO Brad Garlinghouse reiterated the company’s commitment to stand strong against the SEC. Speaking at DC Fintech 2023, Garlinghouse stated that Ripple would go all the way, even if it meant going to the Supreme Court.

Garlinghouse also emphasized that the SEC needs to carefully consider its options. He believes that an appeal would amplify a ruling in favor of Ripple. He further mentioned that going all the way to the Supreme Court would be a positive outcome, saying, “The current Supreme Court, we’d love to see the Vegas odds on how that would go. They have not been friendly to regulators.”

On Thursday, Garlinghouse spoke to CNBC in Dubai about the SEC v Ripple case. He criticized the SEC’s regulation by enforcement approach to the crypto space, stating, “One of the definitions of insanity is doing the same thing over and over again and thinking you’ll get a different outcome. The SEC is doing the same thing over and over again and they think, I guess, they’re going to get a different outcome.” Garlinghouse then referenced the Wednesday interview at DC Fintech World 2023 and the Vegas odds before stating, “The SEC, in my opinion, has lost sight of their mission to protect investors.”

XRP Price Action

XRP held above the 50-day and 200-day EMAs, confirming bullish price signals.

If XRP returns to $0.68, the bulls will have an opportunity to challenge the $0.7047 resistance level. The SEC v Ripple case-related discussions will remain the focal point. However, XRP may face pressure as investors are unlikely to see a resolution to the case until 2024.

If XRP breaks below the $0.6354 support level, it could target levels below $0.60, including the trend line and the $0.5835 support level.

The 14-day RSI reading of 67.18 suggests that XRP may reach $0.68 before entering overbought territory.

4-Hourly Chart

In the 4-hourly chart, XRP remains above the 50-day and 200-day EMAs, indicating bullish price signals.

If XRP breaks above $0.68, it could challenge the $0.7047 resistance level.

However, if it falls below the 50-day EMA, it may test the $0.6354 support level.

The 4-hourly RSI reading of 48.73 suggests that XRP may drop to the $0.6354 resistance level before entering oversold territory.