XRP price could witness correction as SEC goes after Ripple’s financial statements
- XRP price seems to be struggling to breach the $0.600 mark as the market is presently focused on Bitcoin.
- The SEC is continuing its futile attempts at bringing down Ripple, now filing a motion to produce the company's financial statement.
- The regulator is also jumping on the chance to reveal Ripple's post-Complaint contracts governing "Institutional Sales".
The focus of the crypto market at the moment is entirely on Bitcoin owing to the recent spot BTC ETF approval, but the same cannot be said about the Securities and Exchange Commission (SEC) that continues to fight Ripple, impacting the XRP price in return. Per its latest attempt, the regulatory body now wants the company's financial statement for the past year.
SEC goes after Ripple
The SEC filed a motion to compel Ripple to produce the company's financial statement from 2022 to 2023. In addition to this, the regulatory body is also set to ask for Ripple's post-Complaint contracts governing "Institutional Sales."
Earlier in July last year, Ripple won the court's ruling in the lawsuit filed by the SEC against the payment processor. The ruling stated that XRP is not a security on a retail level but did not give this standing to the token at an institutional level. This partial win has allowed the SEC to attempt to win the entire case, the efforts of which can be seen in this filing.
#XRPCommunity #SECGov v. #Ripple #XRP The @SECGov has filed a Motion to Compel @Ripple to produce (a) its financial statements for the years 2022-2023; and (b) its post-Complaint contracts governing “Institutional Sales."https://t.co/Egc4wpf7UY
— James K. Filan (@FilanLaw) January 11, 2024
However, whether or not the court gives it approval is yet to be seen since SEC's track record of winning the court's ruling has not been the best in the past couple of major cases, including the likes of Grayscale, which led to the approval of the spot Bitcoin ETF.
XRP price breach fails
XRP price fell by 5.26% in the past 24 hours to trade at $0.572 at the time of writing. The decline came after the altcoin failed to breach the resistance level, which was marked at $0.600. This price point acted as a crucial support line from early December to the beginning of 2024 and has since been tested as a resistance twice.
Price indicators at the moment suggest that the altcoin is bound to witness none to mild bearishness that could result in either sideways movement or declines. In the case of the former, XRP price would remain rangebound between $0.600 and $0.551. However, the latter could likely lead to a decline below $0.551. This might result in a drawdown to $0.505, marking a 10% fall in price.
XRP/USD 1-day chart
On the other hand, if broader market cues note a shift in funds from Bitcoin to altcoins, recovery is possible, which would be confirmed only when the $0.600 barrier is breached. This would invalidate the bearish thesis and provide strength for further rally.
Ripple FAQs
What is Ripple?
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.
What is XRP?
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.
What is XRPL?
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.
What blockchain technology does XRP use?
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
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
