XRP dips 3% as Ripple co-founder misses key deadline in the SEC lawsuit
- XRP dips to $0.5189, early on Wednesday, down nearly 3% on the day.
- Ripple co-founder Chris Larsen missed the October 18 deadline to submit a required notice of appearance.
- XRP could extend losses by nearly 7%, down to psychologically important $0.50 level.
Ripple (XRP) trades at $0.5189 on Wednesday, October 23. The key market movers for the native token of the XRPLedger are the Securities & Exchange Commission’s (SEC) lawsuit against Ripple.
Co-founder Chris Larsen recently made headlines for his XRP token donation to US presidential candidate Kamala Harris.
Daily Digest Market Movers: Ripple co-founder misses key legal deadline
- Ripple co-founder, Chris Larsen, missed the deadline to submit a notice of appearance, required for legal purposes.
- Marc Fagel, an attorney specialized in SEC enforcement and securities litigation, explains in a recent tweet on X that if Larsen’s legal team fails to file the necessary paperwork by the November 5 deadline, they risk losing the right to present oral arguments.
- This would end up weakening Larsen’s position in the case.
NOTE: This has nothing to do with the SEC, or any supposedly late filing (which wasn't late). This is directed at Larsen, who has not yet filed his appearance in this case.
— Marc Fagel (@Marc_Fagel) October 22, 2024
- Larsen’s actions, however, do not influence Ripple’s position in the lawsuit, and Ripple’s Chief Legal Officer, Stuart Alderoty, assuaged XRP holder’s concern by confirming that the firm will submit its pre-argument by October 25, 2024.
- Ripple’s submission will contest the SEC’s legal argument Judge Analisa Torres’ final ruling on XRP’s institutional sales.
- A timeline for appeal briefs will follow. The US financial regulator will likely be given up to 90 days for its response, which may extend the legal battle into mid-2025.
Technical analysis: XRP could extend losses by nearly 7%
XRP has been in a downward trend since its March 11 high of $0.7440. The Relative Strength Index (RSI) is sloping downward at 36. XRP could dip by 2.54% and sweep liquidity at $0.5000, the psychologically important price level for the altcoin.
Further correction could push XRP lower, and it could dip to the lower boundary of the Fair Value Gap (FVG) at $0.4780. This would imply a 7% decline in XRP price.
XRP/USDT daily chart
If XRP closes above resistance at $0.5550, it would invalidate the bearish thesis. XRP could rally toward the upper boundary of the FVG on the daily chart at $0.5778.
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.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
