- Ripple counsel prepares for the SEC’s appeal against the ruling, with the Howey Test and former SEC official William Hinman’s speech in focus.
- XRP has a historic trend of closing September at a loss.
- XRP price climbs above the $0.50 psychological barrier, unable to start a decisive uptrend.
XRP price has failed to break into an upward trend after struggling to get past the $0.52 hurdle. As the altcoin attempts its recovery, there are two catalysts that can drive changes in its price: The Securities & Exchange Commission (SEC) vs. Ripple lawsuit and XRP’s historic trend of negative monthly returns in September.
Ripple attorneys are preparing to tackle the SEC’s interlocutory appeal against Judge Torres’ ruling. Pro-XRP attorney John Deaton shifted focus to former SEC official William Hinman’s speech and the Howey Test’s application to XRP.
Based on data from crypto price tracker Cryptorank.io, XRP has typically yielded losses for holders in September. This has been the case three out of five times since 2018. If history repeats itself, XRP price is at risk of decline this month.
Also read: XRP price makes comeback above $0.50 as pro-XRP lawyer urges former SEC officials’ testimony
Ripple counsel prepare for SEC appeal with Hinman speech and Howey Test in focus
The SEC is set to file its interlocutory appeal against the Ripple ruling issued by Judge Analisa Torres. The ruling was interpreted as a partial victory for Ripple in the SEC’s lawsuit, however, the regulator is set to appeal before the case heads into trial.
Pro-XRP attorney John Deaton shared key information that could support Ripple counsel’s preparedness against the SEC’s appeal. Deaton commented on a “memo” written by the SEC’s enforcement lawyers that was undisclosed to the public. Deaton stated that Judge Netburn found it important to note that authors of the memo did not recommend any action be taken against XRP token.
To be clear, I didn’t say the memo concluded XRP is not a security. The memo was found to be privileged and not disclosed so I haven’t read exactly what it says. But Judge Netburn found it important to note that the authors of the memo, who were Enforcement lawyers at the SEC,…
— John E Deaton (@JohnEDeaton1) August 27, 2023
Therefore, in June of 2018, the memo did not warrant any action to be taken, declaring XRP as a security or alleging Ripple’s sale of unregistered securities. Deaton said the memo was most likely inconclusive.
XRP price historically closes September at losses
The second catalyst influencing XRP price is the likelihood of the token closing September at a loss. Between 2018 and 2022, XRP closed September at a loss three out of five times. In 2022, XRP price rallied 46.2%, against the historic trend.
With the altcoin’s price struggling to begin its upward trend, it is likely that XRP closes September by yielding losses for token holders.
XRP Monthly Returns over the years as seen on cryptorank.io
XRP price drifts at $0.52, likely headed for decline
Lockridge Okoth, a technical analyst at FXStreet, evaluated the XRP price trend and predicted a decline in the altcoin, unless it makes a decisive break past $0.57. The analyst argues that XRP price is at a risk of a drop to the range low at $0.41, unless it reverses trend.
If XRP successfully breaks past the $0.57 level, the altcoin could tag the monthly high of $0.68.
XRP/USDT one-day price chart on Binance
If selling pressure on the altcoin increases, XRP is likely to continue its downward trend and head to support below $0.41.
Cryptocurrency prices FAQs
How do new token launches or listings affect cryptocurrency prices?
Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
How do hacks affect cryptocurrency prices?
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
How do macroeconomic releases and events affect cryptocurrency prices?
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
How do major crypto upgrades like halvings, hard forks affect cryptocurrency prices?
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC
Bitcoin declined by 1% on Thursday following asset manager VanEck's forecast that the top digital asset will reach a $61 trillion market capitalization by 2050.
Ethereum Classic price sets for a rally following retest of key support
ETC edges higher by 2.3% and trades around $22.60 at the time of writing on Friday after testing a key support area the day before. On-chain data showing increased account growth suggests a bullish move ahead. Ethereum Classic price faced rejection by the daily resistance level of $25.13 earlier this week.
Celebrity meme coins lose their shine
Celebrity meme coins report by Jupiter Slorg on Thursday shows that these tokens have been in deep waters since early July after experiencing heavy growth in June. In a recent analysis, Jupiter Slorg revealed that celebrity meme coins are down by an average of 94% from their all-time highs.
Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit
Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.
Bitcoin: Will BTC manage to recover from recent market turmoil?
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.