XRP price eyes $0.700 despite SEC’s move to subpoena Ripple’s financial statements
- Ripple price is on a recovery rally, riding the ETF wave amid hopes for an XRP investment product like Bitcoin’s.
- With the $0.5784 support level holding, XRP price is committed to reclaiming the $0.700 high, last tested on December 9.
- It comes despite the SEC’s motion to compel Ripple to produce financial statements for 2022-2023 and institutional sales records.
- If the $0.5784 support is lost, the bullish thesis will be invalidated.
Ripple (XRP) price is pushing north after establishing support over the past few days. With a budding recovery rally, the payments ecosystem is facing opposition from the US Securities and Exchange Commission (SEC), shifting the community’s attention from their aspirations for an XRP exchange-traded fund (ETF).
Also Read: Bitcoin price rekindles hope for $50,000 target as spot BTC trading volumes hit the roof
XRP price to confront Ripple legal woes
Following the approval of spot Bitcoin exchange-traded funds (ETFs) applications by multiple filers, the Ethereum (ETH) and the Ripple (XRP) communities began to envision the possibility of a spot ETH or XRP ETF. Valkyrie Funds CIO, Steven McClurg, who said it would not surprise him to see a Ripple or XRP ETF, further reinvigorated this line of thought.
NEW: @ValkyrieFunds Chief Investment Officer @stevenmcclurg says it wouldn’t surprise him if he saw “Ripple” ($XRP) and Ethereum spot ETFs coming to market now that the @SECGov is about to approve one for Bitcoin. pic.twitter.com/EBcwvbgChs
— Eleanor Terrett (@EleanorTerrett) January 9, 2024
Elsewhere, the US SEC has subpoenaed Ripple, filing a motion that will compel the payments company to surrender its financial statements for the years 2022-2023 and its post-complaint contracts governing “Institutional Sales."
#XRPCommunity #SECGov v. #Ripple #XRP The @SECGov has filed a Motion to Compel @Ripple to produce (a) its financial statements for the years 2022-2023; and (b) its post-Complaint contracts governing “Institutional Sales."https://t.co/Egc4wpf7UY
— James K. Filan (@FilanLaw) January 11, 2024
Relatedly, the SEC seeks to compel Ripple to answer a single interrogatory setting forth the amount of XRP Institutional Sales proceeds that it received after the filing of the Complaint for contracts entered into pre-Complaint.
Ripple price outlook with key support holding
Ripple price seems to have bottomed out after the $0.5442 support came into play. The RSI edging north points to rising momentum, whereas the histogram bars of the Awesome Oscillator (AO) flashing green shows the bulls are pushing for the lead.
Enhanced buyer momentum could see Ripple price overcome the critical resistance presented by the 25- and 50-day Exponential Moving Averages (EMA) at $0.6019 and $0.6066 levels respectively. Further north, the gains could go as high as to breach the resistance due to the descending trendline and collecting sell-side liquidity around the $0.7000 psychological level. Such a move would denote a 15% climb above current levels.
XRP/USDT 1-day chart
Conversely, if traders who got wrecked during the January 2 crash choose to exit the market after breaking even, XRP price could drop, with a break below the $0.5442 support exposing Ripple price to a cliff. This would expose further downside as low as the midline of the Fair Value Gap (FVG) at $0.5002. A break and close below this level would confirm the continuation of the downtrend.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
