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.
Interesting how Kraken cites and summarises a key part of the Ripple case. Kraken’s position is that securities entail a certain relationship between an issuer and buyer but the SEC shows no relationship between issuers of tokens which the SEC calls ‘crypto asset securities’ such… pic.twitter.com/Gk5B19uBEx
— bill morgan (@Belisarius2020) February 23, 2024
- 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.
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.
