XRP price drops below psychologically important level while Ripple CLO weighs evidence presented by SEC

• XRP price plummeted below the psychologically important $0.60 level on Tuesday. 
• Ripple CLO Stuart Alderoty weighed the SEC evidence considered by Judge Analisa Torres prior to the July 13 ruling. 
• Alderoty defends XRP token’s non-security status and backs his claims with documents from Coinbase lawsuit. 

Ripple (XRP) price slipped below the key psychological level of $0.60 on Tuesday for the first time in nearly 10 days. The altcoin posted a second consecutive day of losses as market participants and key players still debate Coinbase’s legal loss against the US Securities and Exchange Commission (SEC).

The SEC’s legal battles with Coinbase and Ripple are intertwined.  Coinbase’s defense relies on Judge Torres’ ruling about XRP, which considered that the token wasn’t a security when it was sold through exchanges. This ruling, considered at the time as a partial victory for Ripple, appears to be in question as the judge in the SEC vs. Coinbase case decided to deny the exchange’s motion to dismiss the lawsuit. As it hapenned with Ripple, the SEC considers that Coinbase operated as an unregistered intermediary of securities.

XRP’s status as a security or non-security influences the SEC’s allegations against Coinbase and ties the two lawsuits together. 

Daily digest market movers: Ripple CLO breaks down SEC’s evidence, application of Howey

• The SEC’s lawsuit against Coinbase has an impact on the regulator's lawsuit against Ripple and weighs heavily on the outcome since the cases rely on XRP’s security status. 
• The SEC alleges that Coinbase engaged in the unregistered sale of US securities through its staking program, from which investors earned interest on their crypto tokens.  At the end of March, the judge rejected the exchange’s motion to dismiss the lawsuit. 
• Ripple’s Chief Legal Officer (CLO) Stuart Alderoty examined the SEC’s filing in the Coinbase lawsuit and said on its X account that the regulator has offered four different “confusing” definitions of what constitutes a crypto ecosystem. 

• Alderoty said that in its lawsuit against Ripple, the SEC strayed from “Howey,” a test that determines what qualifies as an investment contract subject to US securities laws. 
• XRP’s “security” status is at risk since Judge Analisa Torres’ application of Howey in the July 13 ruling is being questioned and has been dismissed by two US federal judges so far. Find out more about this here. 

Technical analysis: XRP price slips below $0.60, no relief in sight

Ripple is trading sideways within a tight range between $0.5670 and $0.6686, two levels that act as key support and resistance for XRP on the daily chart, respectively. The latest decline seems to have some momentum as both the red bars below the neutral line on the Awesome Oscillator (AO) and the Relative Strength Index (RSI) move below the 50 midline, support the bearish thesis. 

XRP price could sweep support at $0.5386, a significant support level on the daily chart and collect liquidity before attempting a recovery to test resistance at $0.6686. A daily candlestick close below the $0.60 level could also trigger a run down to the January 31 low of $0.4853. 

XRP/USDT 1-day chart 

If XRP price closes above $0.6147, the 50% Fibonacci placeholder of its rally from January 31 low of $0.4853 to March 11 peak of $0.7440, it could invalidate the bearish thesis for Ripple. XRP price faces resistance at $0.6686, in its climb to the year-to-date peak of $0.7440.

 

---