XRP price slides 5% as experts revisit Judge Torres’s judgment in the Ripple versus SEC case
- Ripple price faces a rejection for the $0.68 mean threshold of the supply zone extending from $0.65 to $0.71.
- XRP could fall 10% to lose the $0.59 support level, shoved lower by selling pressure from a supply barrier.
- The bearish outlook will be invalidated once the altcoin breaks and closes above $0.7148, rendering the supply zone into a bullish breaker.
- Australia-based Attorney Bill Morgan says Judge Torres gave the XRP community a tool against Bitcoin maxis.
Ripple (XRP) upside potential is at risk, sliding south after a loud weekend for the XRP network as experts revisited the July determination that Judge Analisa Torres conferred victory to Ripple over the US Securities and Exchange Commission (SEC).
Also Read: XRP price falls 5% as Ripple and SEC prepare for potential future court proceedings
Ripple vs SEC case ruling remains a bone of contention
Ripple’s (XRP) victory against the SEC became the subject of an intriguing discussion over the weekend. Australia-based lawyer Bill Morgan argued against Bitcoin maxis and critics, among them ScamDaddy on Crypto X. According to Morgan, Judge Analisa Torres indirectly gave the XRP community a weapon against Bitcoin maxis when she analyzed XRP under the Howey Test framework.
In adding this analysis of the token the Judge inadvertently gave the XRP community a weapon against Bitcoin maxis who say everything but Bitcoin is a security and an argument against those who want to muddy the waters about the Judge’s finding on what XRP, those like..well you/6
— bill morgan (@Belisarius2020) November 13, 2023
Morgan’s stance follows a thesis by ScamDaddy, who believes that Judge Torres was not clear whether XRP falls under the commodity or security category. The controversy stems from the July determination in which the judge declared that XRP in itself is not a security other than when it is sold to institutional investors.
According to ScamDaddy, while Judge Torres declared that XRP is not a security, she did not mention whether the asset is a commodity or a currency. Further, he notes that “When she deemed Ripple's sales to institutions as unregistered securities, she said parties did not view the XRP sale as a sale of a commodity.”
ScamDaddy’s position, therefore, is that the judge never concluded that XRP was a commodity. Morgan holds that the judge treated XRP as a commodity in the determination, adding that she even tried to explain why she found Ripple’s institutional sales to be an investment contract on pages 14 to 15 of the summary judgment.
One example she gave of stand-alone commodities was the Gram digital asset. She later concludes her analysis by stating that XRP “as a digital token” (like Gram) is not itself an investment contract even though it may be the ‘subject’ of an investment contract like any other…
— bill morgan (@Belisarius2020) November 13, 2023
Establishing that Judge Torres gave XRP holders a weapon against Bitcoin maxis – such as ScamDaddy, who claims that everything other than Bitcoin (BTC) is a security – Morgan concluded that the ruling would still be logically accurate even if Judge Torres had not provided a legal evaluation for XRP. He notes that the judge’s analysis came in light of the SEC failing or refusing to clarify the security status of XRP based on its own analysis.
Ripple price could drop 10%
Ripple (XRP) price could fall 10% to lose the $0.5981 support level as momentum is falling, as indicated by the southbound Relative Strength Index (RSI). In the same way, the Awesome Oscillator (AO) maintains a consistent streak of red histogram bars as the bears dominate.
A break and close below the $0.5981 support would pave the way for Ripple price to trickle into the consolidation phase between $0.4735 and $0.5392.
XRP/USDT 1-day chart
Conversely, increased bullish momentum, enough to set Ripple price above the $0.6847 midline, would confirm the continuation of the uptrend.
Further north, XRP breaking and closing above the $0.7148 level would invalidate the bearish thesis, flipping the supply barrier into a bullish breaker and setting the tone for a projection to the next supply zone order block extending from $0.7703 to $0.8198.
Again, a decisive move above the midline of this order block at $0.7952 would confirm the intermediate trend, bringing the $0.9000 psychological level into focus. In a highly bullish case, the gains could stretch to tag the range high at $0.9380, 45% above current levels.
Cryptocurrency metrics FAQs
What is circulating supply?
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
What is market capitalization?
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
What is trading volume?
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
What is funding rate?
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
