XRP price dips ahead of key deadline in SEC vs. Ripple lawsuit, regulator cites default judgment
- XRP price nosedived below the key psychological support at $0.60 in Tuesday’s crypto market crash.
- Ripple’s CLO highlighted the SEC’s “bad faith practice” as the regulator cited a default summary judgment in its lawsuit.
- SEC’s lawsuit against Coinbase could influence the outcome of the regulator’s case against Ripple.
XRP price slipped below the key psychological level at $0.60 as Bitcoin experienced a sharp correction after briefly touching a fresh all-time high on Tuesday. The altcoin, which recovered slightly on Wednesday from a low at $0.5386, could see further declines with the upcoming developments in the SEC vs. Ripple lawsuit.
The payment remittance firm’s Chief Legal Officer Stuart Alderoty said that the Securities and Exchange Commission (SEC) has shown “a bad faith practice” by citing a default judgment from a relevant legal issue.
Also read: XRP price eyes $0.70 target, attorney states Ripple’s influence on the altcoin is on a decline
Daily digest market movers: Ripple CLO points out SEC actions are in bad faith ahead of key deadline
- Ripple CLO Stuart Alderoty said on his X account that the SEC told a judge that she should consider a decision from a different court, without disclosing that it was a “default judgment.”
- Alderoty explained that a default judgment is one where no one shows up to defend themself and the relevant legal issue was therefore never actually litigated. Ripple’s CEO considers this “bad faith” and points out that the regulator is engaging in such practices amid the legal battle with the SEC.
Yesterday, SEC told a judge that she should consider a decision from another court without disclosing that the decision was a “default judgment”, meaning no one showed up to defend itself and thus, the relevant legal issue was never actually litigated. That’s bad faith. pic.twitter.com/0qVmHJp8wN
— Stuart Alderoty (@s_alderoty) March 5, 2024
- Investors are currently awaiting a ruling in the SEC vs. Coinbase case, which could be pivotal to the SEC’s legal battle against Ripple.
- Coinbase filed a motion to dismiss the case in August, arguing that the SEC lacks the authority to regulate exchanges. If the Judge grants the exchange’s motion, it could mean the end of the SEC’s “regulation by enforcement” approach.
- A settlement in the SEC vs. Coinbase case could end the regulator’s plan to appeal the Programmatic Sales ruling.
Technical Analysis: XRP price could suffer further decline
The recent XRP price decline could extend to $0.5769, the 50% Fibonacci retracement of its climb to its 2024 peak of $0.6685. The altcoin wiped out its gains, hitting a low of $0.5386 on Tuesday. The altcoin’s price recovered somewhat on Wednesday to $0.6058, but it is struggling to decisively overcome. the psychologically important level of $0.60.
Momentum indicators present a mixed picture. While the red bars on the Awesome Oscillator (AO) signal XRP price could see a further correction, the green bars on the Moving Average Convergence/Divergence (MACD) indicator signal that there is positive momentum.
XRP/USDT 1-day chart
A daily candlestick close above the $0.60 level could invalidate the bearish thesis and XRP price could resume its rally towards its 2024 high of $0.6685.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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.
