XRP jumps above $0.50 as Ripple is set to file opposition brief in SEC lawsuit

Source Fxstreet
Apr 22, 2024 06:54
  • Ripple prepares to file the opposition brief against the SEC on Monday. 
  • Ripple will respond to the SEC’s demand for $2 billion in fines requested in its remedies-related opening brief. 
  • XRP climbed back above $0.50 after nearly a week of struggling to break past the level. 

XRP price climbed to a high of $0.54 on Monday, hours before Ripple files its response to the Securities and Exchange Commission (SEC) remedies-related opening brief. The response is long awaited by XRP holders, as the payment firm is expected to address the regulator’s request for $2 billion in penalties against it. 

Daily digest market movers: Ripple to file response to SEC demand for $2 billion in fines

  • Ripple is set to file its remedy-related opposition brief on Monday as a response to the SEC’s opening brief, which  asked for $2 billion in fines. The content of Ripple’s brief won’t be officially available until Wednesday, although some parts of it could be made public before as it happened when the SEC submitted its brief. 
  • XRP holders anticipate Ripple’s response as developments surrounding the lawsuit are a key driver influencing the altcoin’s price. The opposition brief is considered to be one of the last chances for Ripple to present its arguments against the possibility of penalties.
  • Ripple CEO Brad Garlinghouse recently showed optimism about the payment firm’s expansion plans, stablecoin and XRP utility, in a recent interview with Fox Business. Find out more about it here.
  • Pro Ripple attorney Bill Morgan said that Ripple will have to pay “some fines” and there may be no settlement as the court found that the payment firm broke the law. The SEC accuses Ripple of engaging in an unregistered securities offering by selling XRP to institutional investors, namely hedge funds. https://twitter.com/Belisarius2020/status/1782230566689255890
  • Options Open Interest in XRP is up over 15% in the past day, Coinglass data shows. An increase in Open Interest alongside an increase in price is generally indicative of long positions being built up by traders. 

Technical analysis: XRP poised to test $0.60 resistance

XRP tackled the sticky resistance at $0.50, after a week of broadly consolidating around it. The altcoin has started its recovery, gaining 25% from the April 13 low of $0.4188. The next key resistance is the psychologically important level at $0.60 and the April 9 top of $0.6431. 

XRP bullish trend reversal is confirmed by the Fisher Transform Indicator. This technical indicator highlights when prices move to an extreme and helps traders spot turning points in an asset’s price. 

The transform crossed above the signal line, suggesting a potential bullish trend reversal and indicating a good time for sidelined buyers to buy XRP. 

The Average Directional Index (ADX), typically used to determine the strength and direction of the trend, reads 25.76. An ADX above 25 implies the trend is strong. Both indicators support XRP price recovery and the thesis of a bullish trend reversal.

XRP

XRP/USDT 1-day chart

However, a daily candlestick close below the $0.50 level could invalidate the bullish thesis. XRP could find support at the April 13 low of $0.4188 or the weekly support at $0.4117, a key support level on the weekly price chart. This support has held strong since March 2023. 

Bitcoin, altcoins, stablecoins FAQs

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.

 

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