XRP price dives closer to support while Kraken cites SEC v. Ripple lawsuit in its legal battle
- XRP price inches closer to support at $0.52 with recent developments related to the SEC’s lawsuit against Ripple.
- Kraken cited and summarized a key part of the SEC’s lawsuit against Ripple, that could impact the outcome of the legal battle.
- Kraken cited the summary judgment from the Ripple case to argue against the SEC’s allegations.
The Securities and Exchange Commission’s lawsuit against Ripple has influenced the native token’s price consistently in the past three years. This week the lawsuit entered the remedies phase. Kraken cited Judge Analisa Torres’ summary judgment in the SEC’s lawsuit against the exchange.
The outcome of the legal battle between Kraken and the SEC could influence the outcome of the Ripple lawsuit since it cites the summary judgment.
Also read: Ethereum price briefly touches $3,000 for third time in a week
Daily Digest Market Movers: Ripple’s partial win cited in Kraken’s lawsuit
- Attorney Bill Morgan shared the details of how crypto exchange Kraken cited and summarized a key part of the SEC v. Ripple lawsuit, Judge Analisa Torres’ ruling that XRP is not a security in its secondary sales.
- Kraken’s position in the SEC lawsuit is that there is no relationship between token issuers and the exchange’s users therefore challenging the regulator’s allegations that the exchange facilitated trade of unregistered securities.
- This makes it likely that the outcome of the SEC’s lawsuit against Kraken influences the SEC v. Ripple lawsuit and its outcome.
- Kraken’s exchange platform works in a blind bid/ask format and therefore the sale of tokens on the cryptocurrency exchange is less likely to qualify as “securities” transactions.
- Kraken argues that the lack of connection shows that there is no expectation of profits from the efforts of token issuers as there is no relationship between them and the platform’s users.
Technical Analysis: XRP price drops closer to support at $0.52
XRP price is declining towards support at $0.5219, the 23.6% Fibonacci retracement level of the decline from 2024 peak. Once XRP price sweeps this level, the altcoin could rebound towards its 78.6% Fibonacci retracement at $0.6073.
The Moving Average Convergence/ Divergenc signals that there is positive momentum. The Awesome Oscillator (AO) signals that XRP price could decline further.
XRP/USDT 1-day chart
A daily candlestick close below the 23.6% Fibonacci retracement at $0.5219 could invalidate the thesis of a recovery in XRP price and the altcoin could nosedive to its January low of $0.4853.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
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.
What are altcoins?
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.
What are stablecoins?
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.
What is Bitcoin Dominance?
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.
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