XRP slips under $0.50 as Ripple proponents slam SEC for dropping Ethereum probe
- Ripple proponents have called out the SEC for dropping its investigation into Ethereum.
- Consensys, an Ethereum developer, shared the news of the regulator’s response to a letter.
- XRP is back under the $0.50 resistance in response to Ethereum’s free pass.
XRP trades back below $0.50 on Wednesday as Ripple (XRP) proponents like attorney Bill Morgan have lashed out at the Securities and Exchange Commission (SEC) for what is being considered a “second free pass” for Ethereum.
Ethereum developer Consensys announced on Wednesday in its official X account that the SEC is putting an end to its investigation into the second-largest cryptocurrency. The developer had enquired the status of the investigation through a letter sent to the regulator and received a response.
Daily digest market movers: SEC free pass to Ethereum angers XRP community
- The SEC’s decision to end the investigation into Ethereum has caused a stir in the Ripple community.
- The US financial regulator is embroiled in a legal battle with the cross-border payment remittance firm since 2020, alleging that Ripple sold unregistered securities through the XRP token. The SEC demands the court to impose $2 billion in penalties for Ripple.
- Ripple attempted to draw parallels between other crypto litigation, like the SEC’s lawsuit against Terraform Labs and its founders, to reduce the amount of the fine. This attempt was rejected by the regulator, but it opened the door to a significantly smaller penalty of around $102 million.
- For years, the XRP holder community has slammed the SEC for what is deemed “unequal” treatment of Ripple compared to its peers. Community members have criticized the agency for bringing a lawsuit against Ripple while Ethereum gets a “free pass.” History repeated itself with the SEC pulling a stop on its investigation into Ether.
- While the closing of the investigation marks a win for the Ethereum holder community, Ripple proponent attorney Bill Morgan has slammed the SEC for different treatment of Ethereum and Ripple for the second time in six years.
Ethereum’s second free pass from the SEC almost exactly 6 years after the Hinman free speech.
— bill morgan (@Belisarius2020) June 19, 2024
Ethereum’s and Ripple’s different treatment will forever show how arbitrary the SEC has been in crypto. https://t.co/Coxf6czO9r pic.twitter.com/WNcacVYhNE
Technical analysis: XRP plunges below $0.50 yet again
Ripple price has declined steadily since mid-March. The altcoin closed above the sticky resistance at $0.50 for the first time in ten days on Monday, but it is back under this key level following the news of SEC dropping its investigation into Ethereum.
In case of further selling pressure, XRP risks a 5% decline to the April 19 low of $0.4665, a key support level for Ripple.
XRP/USDT daily chart
However, if XRP sees a daily candlestick close above $0.5330, the resistance and June 5 high, it could invalidate the bearish thesis. In such a scenario, the token could climb towards the Fair Value Gap extending between $0.5491 and $0.6029.
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.
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