Leading cryptocurrencies edged sideways to lower in Thursday’s Asian session after the U.S. Securities and Exchange Commission (SEC) outlined plans to appeal the XRP ruling in its drawn-out case against Ripple Labs. In a court filing on Wednesday, the SEC asked U.S. District Judge Analisa Torres who presided over the case to let a federal appeals court review her July 13 decision, in which she said the sale of Ripple’s XRP digital token on public exchanges complied with federal securities laws.
“Specifically, the SEC seeks to certify the Court’s holding that Defendants’ ‘Programmatic’ offers and sales to XRP buyers over crypto asset trading platforms and Ripple’s ‘Other Distributions’ in exchange for labor and services did not involve the offer or sale of securities under [the Howey test],” the filing said.
Ripple has until Aug. 16, 2023, to respond to the SEC’s appeal, after which the SEC intends to file an opening brief outlining the appeal on Aug. 18. Ripple will then have two weeks to provide a response, followed by another week for the SEC to reply if the judge approves the filing.
Below we take a look at key technical levels in Bitcoin (BTC), Ethereum (ETH) and Ripple’s XRP (XRP).
Bitcoin’s price has encountered selling pressure at the 200-period SMA, with the indicator proving a key line of resistance. Volumes remain lackluster, indicating ongoing uncertainty. If the bulls stage a rally above the 200 SMA, the price may make another attempt at overhead resistance around $31,200. Alternatively, if Bitcoin fails to hold the 50 SMA, a breakdown to a longer-term horizontal trendline at $28,000 remains a possibility.
Ethereum’s price also remains pressured by the 200 SMA on low trading volume. Since breakout out above the top trendline of a descending triangle on Tuesday, the price has oscillated between the 50- and 200 SMAs, looking somewhat directionless. A convincing move above the 200 SMA could trigger a short-term rally to key resistance at $1,917, followed by a possible test of last week’s high just above the psychological $2,000 level. Conversely, inability to hold the 50 SMA could see the price fall to key support at $1,755.
After initially breaking out above a falling wedge, XRP’s price has encountered bears eager to sell at the 200 SMA. This area also roughly aligns with a “death cross” signalling an ominous warning to the bulls. However, a move above this level could lead to a short squeeze, seeing the price revisit previous highs around $0.83. A failure to hold the triangle’s top trendline could drive selling down to crucial support at $0.54.