XRP bulls are targeting $0.42 on the back of a Powell-driven shift in sentiment

SEC v Ripple Updates Take a Backseat to Fed Chair Powell

On Tuesday, Fed Chairman Powell provided riskier assets with guidance. After Friday’s US jobs report and ISM’s non-manufacturing PMI, uncertainty about the impact of hotter-than-expected numbers on the Fed’s interest rate path weighed on riskier assets.

BTC was on a five-day losing streak during the Tuesday session, with XRP seen in the red in four sessions out of five.

However, Fed Chair Powell delivered a less hawkish speech than expected, driving demand for the riskier asset and sending XRP back to the $0.40 handle. The Fed chief avoided panic in the markets by calling for more aggressive policy action while discussing interest rate cuts.

The Nasdaq and S&P 500 responded to Powell’s speech, ending the day with gains of 1.90% and 1.29%, respectively.

There have been no updates from the ongoing SEC v Ripple case to the effect. However, Amicus Curiae attorney James Deaton is back in the spotlight this week.

Monday, defense attorney James Phelan published the latest news, likeAnd

John Deaton will file a motion to file an amicus brief in Zakinov v. Ripple in California. There, the plaintiffs allege that Ripple sold XRP as unregistered security. They are asking the court to certify a class of all XRP holders who either bought and now hold XRP or sell XRP at a loss.”

Disagreeing with Zakinov’s small number of plaintiffs, Phelan noted that the proposed class would include 75,890 XRP holders. In particular, XRP holders are residents of countries that have already decided that XRP is not a security.

A court ruling in favor of the plaintiffs could create uncertainty in the SEC v Ripple case, which would be negative for the price of XRP.

Today, investors should continue to monitor the cryptocurrency news feed for updates from the SEC v Ripple case, FTX, Genesis, and Silvergate Bank. There are no US economic indicators to influence, while the hawkish FOMC members’ speech will be bearish. FOMC members Williams, Waller and Barr will speak today.

With the focus of FOMC talk, the Nasdaq is likely to influence the afternoon session.

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