Ripple (XRP) climbed to a high of $0.55 on Tuesday following the publication of its response to the allegations from the US Securities and Exchange Commission (SEC). In its filing, Ripple addressed the SEC’s request for $2 billion in penalties and remedies-related opening brief, dismissing most of the claims from the US regulator and asking the judge to impose the firm a penalty of no more than $10 million.
XRP holders have awaited Ripple’s response to the SEC throughout April, with the altcoin gaining nearly 7% from Monday’s low of $0.52.
Our opposition to the SEC’s request for $2B in penalties for legacy institutional sales is now public. In a case that had no allegations (or findings) of recklessness or fraud, and in which Ripple won on significant issues, the SEC’s ask is just more evidence of its ongoing… https://t.co/GLcdsyInZW
— Stuart Alderoty (@s_alderoty) April 23, 2024
The Court should deny the SEC’s request for an injunction, for disgorgement and for pre-judgement interest, and should impose a civil penalty of no more than $10 million.
XRP climbed to a high of $0.55 on Tuesday, extending an upward trend that started on April 14. The next key resistance is the psychologically important $0.60 level. Once above there, the next target is the April 9 top of $0.6431.
The Chaikin Money Flow indicator, a volume indicator that measures the amount of Money Flow Volume over a particular period, reads 0.21 on Tuesday. The indicator typically fluctuates above or below the zero line, similar to other oscillators. When the CMF value is above the zero line, it signals strength in XRP’s uptrend.
The CMF climbed above zero on April 16, confirming the direction of Ripple’s breakout. The indicator therefore supports a bullish thesis for XRP.
The volatility indicator Donchain Channel is used to determine opportunities to take profits by opening long or short positions in an asset. When applied to XRP/USDT 1-day chart, the asset has broken above the midpoint of the Channel. Traders typically use the middle line as an indicator of when to open or close their position.
XRP price has moved above the middle line, climbing towards the upper band, signaling an opportunity for holders to open a long position in XRP. The target for this trade can be the upper band, which aligns with the April 9 top of $0.6431 in the case of XRP.
XRP/USDT 1-day chart
A daily candlestick close below $0.5310, or the 50% Fibonacci retracement of XRP price decline from the April 9 top of $0.6431 to the April 13 low of $0.4188, could invalidate the bullish thesis. In case of a price decline, XRP could find support at the April 20 low of $0.4981, a level that has acted as support for over two months on the daily chart.
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.