XRP price plunges as Kraken cites SEC v. Ripple lawsuit in its legal battle against the regulator

  • XRP price inches closer to support at $0.52 after the recent developments related to the SEC’s lawsuit against Ripple. 
  • Kraken cited a key part of the SEC’s lawsuit against Ripple that could impact the outcome of its own legal battle against the regulator. 
  • Kraken cited the summary judgment from the Ripple case to argue against the SEC’s allegations.

The Securities and Exchange Commission’s (SEC) lawsuit against Ripple has influenced the native token’s price consistently in the past three years. This week the lawsuit entered the remedies phase, while crypto exchange Kraken has cited Judge Analisa Torres’ summary judgment in the SEC’s lawsuit against Ripple in its own legal battle against the financial regulator. 

The outcome of the lawsuit between Kraken and the SEC could influence the outcome of the Ripple case since it cites the summary judgment. 

Also read: Ethereum price briefly touches $3,000 for third time in a week

Daily digest market movers: Ripple’s partial win cited in Kraken’s lawsuit

  • Attorney Bill Morgan shared the details of how crypto exchange Kraken cited and summarized a key part of the SEC vs. Ripple lawsuit, in which the judge ruled that XRP is not a security in its secondary sales. 
  • Kraken’s position in the SEC lawsuit is that there is no relationship between token issuers and the exchange’s users, challenging the regulator’s allegations that the exchange facilitated the trade of unregistered securities.
  • This makes it likely that the outcome of the SEC’s lawsuit against Kraken influences the SEC vs. Ripple lawsuit and its outcome.
  • Kraken’s exchange platform works in a blind bid/ask format. Therefore, the sale of tokens on the cryptocurrency exchange is less likely to qualify as “securities” transactions. 
  • Kraken argues that the lack of connection shows that there is no expectation of profits from the efforts of token issuers as there is no relationship between them and the platform’s users. 

Technical Analysis: XRP price drops closer to support at $0.52

XRP price is declining towards support at $0.5219, the 23.6% Fibonacci retracement level of the decline from 2024 peak seen at the beginning of the year. Once XRP price sweeps this level, the altcoin could rebound towards its 78.6% Fibonacci retracement level at $0.6073. 

The Moving Average Convergence Divergence indicator (MACD) signals still positive momentum, while the Awesome Oscillator (AO) signals that XRP price could decline further. 


XRP/USDT 1-day chart 

A daily candlestick close below the 23.6% Fibonacci retracement at $0.5219 could invalidate the thesis of a recovery in XRP price. In this case, prices could fall further towards its January low of $0.4853. 

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.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Fetch.ai Price Prediction: FET must hold above $1.70 for strength

Fetch.ai Price Prediction: FET must hold above $1.70 for strength

Fetch.ai price has dropped nearly 45% since late March as broader markets started bleeding. FET bulls must defend $1.70 if they want to keep the upward thrust alive, signaling strength on the AI coin. A break and close below $1.59 would mean a lower low, invalidating the bullish reversal thesis.

More Fetch.ai News

OKX executives depart from exchange while its XLayer Chain goes live

OKX executives depart from exchange while its XLayer Chain goes live

Two senior executives at crypto exchange OKX, Tim Byun and Wei Lan, have left the company after years of heading key roles, according to a CoinDesk source. However, the company is making expansion moves through the launch of its own Layer 2 (L2) chain.

More Cryptocurrencies News

Traders eyeing long positions could have their rally soon as funding rates flip negative

Traders eyeing long positions could have their rally soon as funding rates flip negative

Bitcoin (BTC) price remains on a load-shedding exercise, a sentiment that has spilled over to the broader market. Nevertheless, the bleed seen across the cryptocurrency market could end soon amid possible shifting market sentiment.

More Cryptocurrencies News

Prisma Finance hacker could be uncovered after investigations by on-chain analyst

Prisma Finance hacker could be uncovered after investigations by on-chain analyst

On March 28, DeFi protocol Prisma Finance suffered an attack on one of its smart contracts, resulting in a loss of 3257 ETH worth $11.1 million. Prisma Finance immediately halted its protocol after the hack, ordering users to revoke access to the smart contract.

More Cryptocurrencies News

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established. 

Read full analysis