XRP price could sweep support at $0.50 as expert argues SEC is less likely to settle lawsuit against Ripple
- XRP price dropped to $0.53, inching closer to psychologically important support at $0.50.
- Legal expert argues that SEC is unlikely to settle its lawsuit against Ripple as Kraken uses Judge Torres’ ruling in its motion.
- Attorney Bill Morgan says that the SEC will likely be strongly motivated to appeal Judge Torres’ ruling on XRP secondary sales.
XRP price decline to the psychologically important level of $0.50 becomes likely as the altcoin drops to $0.53 on Monday. XRP holders are anticipating the Securities and Exchange Commission’s (SEC) next move. Attorney Bill Morgan states that the regulator will likely be strongly motivated to appeal Judge Analisa Torres’ July ruling in the SEC v. Ripple lawsuit.
Also read: XRP price plunges as Kraken cites SEC v. Ripple lawsuit in its legal battle against the regulator
Daily Digest Market Movers: SEC unlikely to settle its lawsuit against Ripple, legal expert predicts appeal
- The SEC v. Ripple lawsuit has taken center stage in the developments that influence XRP price.
- While XRP holders expect a settlement in the lawsuit, legal expert Bill Morgan says that the regulator is likely to appeal Judge Torres’ ruling.
- One of the main reasons is Kraken's citation of Judge Torres’ ruling on XRP “not an investment contract” in its motion against the SEC.
- In its motion, Kraken cites the summary judgment from the SEC v. Ripple lawsuit and alleges the lack of an issuer and buyer connection. The exchange states that the lack of the connection is one of the grounds of no profit expectation of users from Ripple’s efforts, just as Judge Torres found in the SEC v. Ripple lawsuit.
- The exchange is extending this to 11 issuers of tokens in their case where the regulator alleges the assets are securities.
- Attorney Morgan believes this is likely to motivate the SEC to appeal Judge Torres’ ruling and this could have a direct impact on the status of XRP as “a non-security.”
The manner in which Kraken uses the finding of Judge Torres on programmatic sales in the summary judgment decision in its own motion to dismiss shows why the SEC will be strongly motivated to appeal Judge Torres’ decision. It is why a settlement of the SEC v Ripple case seems so… https://t.co/n1uYaOlh1d
— bill morgan (@Belisarius2020) February 23, 2024
- The SEC v. Ripple settlement is therefore unlikely.
Technical Analysis: XRP price could sweep support at $0.50
XRP price is currently in a downward trend and the altcoin could hit support at $0.50, before beginning a recovery. Early on Monday, XRP price is $0.53. The altcoin is likely to nosedive to support, as seen in the price chart below.
The $0.50 level has acted as a psychologically important level for several months. The red bars on the Awesome Oscillator (AO) signal that a decline in XRP price is likely. The downward trend is likely in place.
The green bars on the Moving Average Convergence/ Divergence (MACD) indicator signal there is positive momentum and XRP price could see a recovery soon.
XRP/USDT 1-day chart
If XRP price climbs to $0.5446 and sees a daily candlestick close above the 38.2% Fibonacci retracement level of its decline from the 2024 high, the bearish thesis could be invalidated and the altcoin could rally towards the 78.6% Fibonacci retracement at $0.6073.
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.
