XRP price trades broadly unchanged leading up to crucial milestone in SEC vs. Ripple lawsuit

  • XRP price trades sideways on Monday after yielding 3.66% weekly losses for holders. 
  • Following the recent developments in the SEC vs. Ripple lawsuit, the next key date is February 12. 
  • Legal expert John Deaton notes that Ripple could show an exemption to a vast majority of institutional sales in the lawsuit. 

XRP (XRP) price trades broadly unchanged on Monday at $0.5046, up 0.30% on the day, after recording a 3.74% loss in the past week. The next key date in the SEC vs. Ripple lawsuit is February 12, when the remedies-related discovery period ends. According to legal expert Bill Morgan, presiding Judge Analisa Torres might need to rule on the regulator’s motion to compel before the deadline. 

Also read: Ripple Price Forecast: XRP can revisit $0.696 if these conditions are met

Daily digest market movers: Ripple settle for nearly $10 million, Deaton says

  • The SEC vs. Ripple lawsuit has weighed heavily on XRP price since its beginning. Ripple was handed a pivotal victory in July as Judge Torres ruled that XRP was not a security by itself.
  • The latest development in the lawsuit is the US regulator’s motion to compel Ripple to share detailed financial statements for 2022 and 2023 and post-complaint contracts governing XRP sales to institutional investors. 
  • Ripple has condemned the move and filed a response letter arguing against the motion to compel, stating that the regulator’s lawyers have made factual mischaracterizations. 
  • XRP holders look forward to the February 12 deadline for the completion of the remedies-related discovery. 
  • Legal expert Bill Morgan expects Judge Torres to rule on the motion before the February 12 deadline and Attorney John Deaton (associated with the SEC vs. Ripple lawsuit as amicus curiae or friend of the court) notes that Ripple could pay nearly $10 million and settle the lawsuit, in a recent YouTube video. 
  • Deaton says that Ripple is likely to show how a vast majority of its institutional sales were to accredited investors, in an exception to Section 5 of the Securities Act.
  • Deaton states that Judge Torres is likely to fine Ripple significantly less than its $200 million legal fees, a fine of $10 million is likely. 

Technical Analysis: XRP could retest support at $0.468 before recovery

Akash Girimath, technical analyst at FXStreet, notes that the short-term outlook for XRP price is bearish. The altcoin is likely to sweep its support at $0.468 before posting a recovery from the $0.532 support line. Once these two conditions are met, the long-term outlook turns bullish, and investors can expect XRP to resume its uptrend, eyeing $0.696 as the main target to the upside. 

XRP/USDT 1-day chart 

A retest of the $0.468 support level and a failure to bounce from it could signal weakness in the trend and invalidate the bullish thesis. XRP price could crash nearly 18% and hit the $0.379 support. 

Open Interest, funding rate FAQs

How does Open Interest affect cryptocurrency prices?

Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.

How does Funding rate affect cryptocurrency prices?

Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.

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