XRP ranges below $0.53 as traders digest SEC vs. Ripple lawsuit filings and evidence

Source Fxstreet
May 9, 2024 06:45
  • Ripple and the SEC have filed their reply briefs and supporting evidence, awaiting the court’s ruling in the lawsuit. 
  • SEC’s redacted reply brief to Ripple, made public on Wednesday, continued to demand a hefty penalty of $2 billion. 
  • XRP is stuck below sticky resistance at $0.53 on Thursday. 

XRP is ranging below $0.53 on Thursday as investors continue to digest the recent developments in the legal battle between Ripple and the US Securities and Exchange Commission (SEC). 

Both parties have filed their final remedies-related briefs and replies, in which they continue to support their prior stances: While SEC demands a $2 billion fine, Ripple considers that this should amount to a maximum of $10 million. The judge is expected to rule on the case in May.

Daily Digest Market Movers: XRP legal proceedings draw to a close

  • SEC vs. Ripple lawsuit has garnered much attention from XRP holders, as developments in the legal battle have impacted the altcoin’s price. Both parties have filed their remedies-related briefs, opposing briefs and responses. Redacted versions of the filings and the supporting evidence have been made publicly available on Wednesday. 
  • The court is expected to rule on the penalties to be imposed on Ripple for the alleged violation of securities laws in May. 
  • Attorney James Filan shared the recent redacted version of the SEC filing in a tweet on X:
  • Attorney Jeremy Hogan noted that the SEC did not comment on institutional sales of XRP, and observed that Ripple is trying to re-litigate. In Hogan’s words the SEC “went out without a whimper.”
  • Attorney Bill Morgan pointed out that Ripple may have considered the worst-case scenario in the lawsuit, a permanent injunction on its ODL sales. Ripple is prepared for the court ordering the firm to stop its XRP ODL sales, and this is clear from the way that the payment remittance firm has structured its arrangements for the US and other jurisdictions where it holds licenses. 

Technical analysis: XRP stuck below $0.53 on Thursday

Ripple is stuck between the $0.57 and $0.50 range for over one week. The altcoin faces sticky resistance at $0.53 at the time of writing, a level that represents the 50% Fibonacci retracement from the April 9 to April 13 sell-off. 

In the weekly time frame, the $0.4665 level is a key support for XRP, and the $0.5630 is the key resistance level to beat. 

The Volume Profile indicator shows that the point of control is at $0.6159, which acted as support throughout March. It corresponds to the highest volume of XRP traded in the daily chart. The Moving Average Convergence Divergence (MACD) indicator shows green histogram bars above the neutral line, implying positive momentum in Ripple’s upward trend that started on April 20.

XRP

XRP/USDT 1-day chart

Looking down, XRP could find support at the May 1 low of $0.4782. XRP could sweep liquidity at this level and attempt to recover from the recent decline in price. 

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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