XRP price fails to show parity with Ripple’s important victory over SEC, 5% pullback seems likely
- Ripple price remains trapped under the $0.6603 support level after filling up a symmetrical triangle and breaking below it.
- XRP could extend the fall 5% to invalidate its big-picture bullish outlook below the $0.5981 critical support level.
- A decisive move above the $0.7000 psychological level would invalidate the bearish thesis.
Ripple (XRP) price continues to slide, failing to match the strong fight that Ripple Labs founder Brad Garlinghouse and chairman Chris Larsen put up against the US Securities and Exchange Commission (SEC) when the financial regulator levied charges against the duo for allegedly aiding and abetting the firm's violations of US securities laws when they sold XRP to institutional clients.
Also Read: XRP price falls 5% as Ripple and SEC prepare for potential future court proceedings
Ripple legal officer tells crypto companies to fight when faced with regulatory overreach
Ripple chief legal officer Stuart Alderoty has urged firms to fight when faced with regulation by enforcement and defend themselves when they suffer regulatory overreach.
#Ripple Reality Checks About the #SEC with @s_alderoty #UBRI Connect 2023 pic.twitter.com/nEFmDd7faS
— 707Crypto (@707_crypto) November 15, 2023
This is what Ripple chose to do, according to the CLO. CEO Brad Garlinghouse and Chairman Chris Larsen chose to defend itself when the US Securities Y Exchange Commission (SEC) named them personally in a non-fraud case.
Alderoty observes that this was the first time in the history of crypto in the US where individuals have been named along with the company without an allegation of fraud. In his opinion, this was done in the case of Ripple to bring the firm to its knees and get them to surrender.
Nevertheless, he hails the firm and its executives for putting up a strong fight, adding that Ripple won “in a very important way,” inspiring courage in other participants.
In case you missed it, on July 13, Judge Analisa Torres determined that XRP was only considered a security when sold to institutional clients, a decision that signified a landmark win for Ripple, causing XRP price to go ballistic.
Fast-forward three months, the SEC dropped its lawsuit against the two Ripple executives. In a letter to Judge Torres, the plaintiff (US SEC) “respectfully notified the court of the stipulated dismissal of the SEC’s pending claims against the defendants, Christian Larsen and Bradley Garlinghouse.”
The SEC had levied charges against Garlinghouse and Larsen on allegations that they had “aided and abetted” Ripple’s violations of US securities laws when they sold XRP to institutional clients.
Ripple price could extend fall by 5% amid waning momentum
Ripple (XRP) price slipped below the lower boundary of a symmetrical triangle, drawing toward the $0.5981 support level with prospects for more losses amid waning momentum. The Relative Strength Index (RSI) heading south indicates this with its downward trajectory. The Awesome Oscillator (AO) is also bearish, with its histogram bars drawing toward the midline.
A break and close below the $0.5981 support level would solidify the downtrend, setting the tone for an extended move south, potentially into the consolidation phase between $0.4735 to $0.5392.
XRP/USDT 1-day chart
Conversely, if sidelined investors enter the fray, Ripple price could recover above the lower boundary of the triangle, rising past the $0.7000 psychological level as it races toward the Fair Value Gap (FVG) stretching from $0.7512 to $0.7623.
With the FVG active as a magnet for Ripple price to clear the imbalance in the market, the gains could extend past this order block to test the $0.8000 in a highly bullish case. Such a move would denote a 30% climb above current levels.
Cryptocurrency prices FAQs
How do new token launches or listings affect cryptocurrency prices?
Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
How do hacks affect cryptocurrency prices?
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
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Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
How do major crypto upgrades like halvings, hard forks affect cryptocurrency prices?
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
