XRP rallies past $0.50 as Ripple prepares for response to SEC requirement for $2 billion in penalty
- Ripple prepares to file the opposition brief against the SEC on Monday.
- Ripple will respond to the SEC’s demand for $2 billion in fines requested in its remedies-related opening brief.
- XRP climbed back above $0.50 after nearly a week of struggling to break past the level.
XRP price climbed to a high of $0.54 on Monday, hours before Ripple files its response to the Securities and Exchange Commission (SEC) remedies-related opening brief. The response is long awaited by XRP holders, as the payment firm is expected to address the regulator’s request for $2 billion in penalties against it.
Daily digest market movers: Ripple to file response to SEC demand for $2 billion in fines
- Ripple is set to file its remedy-related opposition brief on Monday as a response to the SEC’s opening brief, which asked for $2 billion in fines. The content of Ripple’s brief won’t be officially available until Wednesday, although some parts of it could be made public before as it happened when the SEC submitted its brief.
- XRP holders anticipate Ripple’s response as developments surrounding the lawsuit are a key driver influencing the altcoin’s price. The opposition brief is considered to be one of the last chances for Ripple to present its arguments against the possibility of penalties.
- Ripple CEO Brad Garlinghouse recently showed optimism about the payment firm’s expansion plans, stablecoin and XRP utility, in a recent interview with Fox Business. Find out more about it here.
- Pro Ripple attorney Bill Morgan said that Ripple will have to pay “some fines” and there may be no settlement as the court found that the payment firm broke the law. The SEC accuses Ripple of engaging in an unregistered securities offering by selling XRP to institutional investors, namely hedge funds. https://twitter.com/Belisarius2020/status/1782230566689255890
- Options Open Interest in XRP is up over 15% in the past day, Coinglass data shows. An increase in Open Interest alongside an increase in price is generally indicative of long positions being built up by traders.
Technical analysis: XRP poised to test $0.60 resistance
XRP tackled the sticky resistance at $0.50, after a week of broadly consolidating around it. The altcoin has started its recovery, gaining 25% from the April 13 low of $0.4188. The next key resistance is the psychologically important level at $0.60 and the April 9 top of $0.6431.
XRP bullish trend reversal is confirmed by the Fisher Transform Indicator. This technical indicator highlights when prices move to an extreme and helps traders spot turning points in an asset’s price.
The transform crossed above the signal line, suggesting a potential bullish trend reversal and indicating a good time for sidelined buyers to buy XRP.
The Average Directional Index (ADX), typically used to determine the strength and direction of the trend, reads 25.76. An ADX above 25 implies the trend is strong. Both indicators support XRP price recovery and the thesis of a bullish trend reversal.
XRP/USDT 1-day chart
However, a daily candlestick close below the $0.50 level could invalidate the bullish thesis. XRP could find support at the April 13 low of $0.4188 or the weekly support at $0.4117, a key support level on the weekly price chart. This support has held strong since March 2023.
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.
