DOGE Shifts Focus Toward the SEC

• DOGE shifts focus toward the SEC as crypto investors expect the examination to reveal abuse in its case against Ripple.
• SEC could pause its appeal against Judge Analisa Torres ruling of XRP retail sales not constituting securities.
• XRP could decline to $2.24 if it fails to bounce off the $2.55 support and recover $2.72.

Ripple’s XRP saw a 4% decline in the early Asian session on Tuesday, following an announcement that the Department of Government Efficiency (DOGE) is targeting the Securities and Exchange Commission (SEC) in its examination process.

DOGE to Examine SEC as XRP Community Members Expect a Positive Outcome

The Department of Government Efficiency (DOGE), led by Tesla and SpaceX CEO Elon Musk, is shifting its focus to the SEC to investigate waste, fraud, and abuse.

The DOGE’s examination of the SEC has heightened volatility in the crypto markets. Many community members in the XRP ecosystem anticipate that the Ripple vs. SEC case will receive scrutiny during this examination.

> NEW: @DOGE is turning its attention to the @SECGov. https://t.co/9oCjmZThEk
> — Eleanor Terrett (@EleanorTerrett) February 17, 2025

Should DOGE uncover significant waste or misconduct related to the Ripple versus SEC case, it may support claims that the agency improperly targeted crypto companies under former Chair Gary Gensler.

DOGE has reportedly identified waste and abuse of government funds across various US agencies.

In another development, the new SEC administration is set to hold a closed-door meeting regarding the case on February 20. The agency might decide to pause its appeal against Judge Analisa Torres’ ruling—previously filed by the previous administration—similar to its recent pause on cases against Binance and Coinbase. This outcome could potentially mark the end of the SEC’s legal battle against Ripple.

Such a resolution could lead to the approval of XRP ETF applications, which the SEC acknowledged on Friday.

XRP Could Find Support Near $2.24 If It Fails to Recover $2.72

XRP has been unable to hold above the $2.72 level, registering a 3% decline in the past 24 hours. This follows a pullback after a 10% recovery last week.

The 14-day Exponential Moving Average (EMA) at approximately $2.55 may offer support for XRP to regain strength above $2.72. However, if this level fails, XRP could drop to a support level of $2.24.

XRP/USDT daily chart

The Relative Strength Index (RSI) and Stochastic Oscillator indicate weakening bullish momentum but remain above neutral levels.

If a daily candlestick closes below $1.96, this could invalidate the bullish thesis, leading XRP towards $1.35.