Ripple AMM is back in action on XRPLedger, XRP price retests $0.60 support

Source Fxstreet
Apr 12, 2024 06:00
  • Ripple sees AMM back in action on the XRPLedger mainnet after amendment on Friday. 
  • XRP price tests $0.60 support, price ranges below $0.62 on April 12. 
  • Ripple CLO shared the Second Circuit Court of Appeals refusal to reconsider their decision, considered a loss for the SEC. 

Ripple (XRP) price is testing support at the psychologically important $0.60 level on Friday, despite Bitcoin price rally to $70,900 on April 12. XRP price remains unaffected by Bitcoin’s recent gains. 

XRP is likely influenced by the recent Automated Market Maker (AMM) amendment, developments in the Securities and Exchange Commission (SEC) lawsuit against Ripple and related court cases, like Govil, Coinbase lawsuit.

Daily digest market movers: XRPLedger AMM is live again, fails to catalyze gains in Ripple

  • XRPLedger’s ‘fixAMMOverflowOffer’ amendment went live early on Friday. The AMM is back in action on the mainnet and this marks a milestone for Ripple’s blockchain. 
  • Ripple CLO Stuart Alderoty shared details of a lawsuit in which the Second Circuit rejected the SEC’s appeal. 
  • The SEC alleges that Aron Govil used his position as a controlling shareholder to cause Cemtrex to engage in a variety of fraudulent conduct. The regulator is seeking disgorgement of misappropriated funds, however the Second Circuit denied the SEC’s appeal. 
  • Alderoty considers it the SEC’s loss since the Second Circuit refused to reconsider their decision in Govil which held that if a buyer suffers no financial loss, then the regulator is not entitled to disgorgement from the seller. 
  • This lawsuit decision has an impact on the Ripple case, since the SEC is seeking over $2 billion in fines from the payment remittance firm. 
  • The SEC seeks the fines for the institutional sales of XRP made by the payment remittance firm, and violation of securities laws. It alleges that Ripple violated securities laws. 
  • The Govil decision therefore sheds light on what XRP holders can expect from the SEC’s appeal in the Ripple lawsuit. 
  • Pro Ripple attorney Bill Morgan commented on the Govil lawsuit and its impact on the Ripple case. Morgan said that no conclusion can be drawn until Ripple’s brief and counter arguments against SEC’s motion are made public. 

Technical analysis: XRP price ranges below $0.62, fails to rally

Ripple price is trading within a tight range between the April 4 low of $0.5623 and April 9 high of $0.6431. XRP price is testing the $0.60 support on Friday. This is considered a key psychological level for the altcoin, it acted as support throughout March and April 2024. 

A successful retest of $0.60 would mean XRP price is likely to make its way to the April 9 high of $0.6431. It faces resistance at $0.6336, a level that the altcoin has failed to break in the past two weeks. 

XRP

XRP/USDT 1-day chart 

A daily candlestick close below $0.6027, the 50% retracement of XRP’s climb to April 9 could invalidate the bullish thesis. XRP price could find support at $0.5851 and $0.5386, two levels that have held throughout mid March and April 2024. 

Ripple FAQs

Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.

XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.

XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.

XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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