XRP holds steady above $0.50 despite setback in SEC vs. Ripple legal battle
- XRP price is in a downward trend but keeps trading above the $0.50 psychological level on Tuesday.
- Judge Sarah Netburn, who presides the SEC vs. Ripple lawsuit, granted the SEC’s motion to compel in its entirety.
- Ripple is ordered to produce its 2022-2023 financial statements and post-complaint institutional sales proceeds.
XRP price hovers around $0.5054 on Tuesday as the altcoin struggles to stay above the psychologically important level of $0.5000. XRP price is at risk of further correction as Ripple pocketed a loss in the latest ruling affecting the payment-remittance firm against the US Securities and Exchange Commission (SEC)..
The presiding judge Sarah Netburn granted the SEC’s motion to compel Ripple to produce its financial statements from 2022-2023 and post-complaint institutional sales proceeds.
Also read: XRP price trades broadly unchanged leading up to crucial milestone in SEC vs. Ripple lawsuit
Daily digest market movers: XRP price holds steady despite legal setback
- The US financial regulator’s lawsuit against Ripple has influenced the asset’s price in the past three years. The caseresulted in de-listing from major exchanges and affected the payment remittance firm that was once the largest public holder of the XRP token.
- While the most recent development in the SEC vs. Ripple lawsuit may not be entirely favorable to the cross-border payment giant, XRP price has held steady above the $0.50 level.
- This level is considered psychologically important since it has acted as support for XRP for over three months.
- The judge presiding on the SEC v. Ripple case granted the regulator’s motion to compel in its entirety, meaning that the firm is ordered to produce its financial statements from 2022-23 and its post-complaint (meaning post the SEC lawsuit) institutional sales contracts.
#XRPCommunity #SECGov v. #Ripple #XRP Magistrate Judge Netburn has granted the @SECGov’s Motion to Compel in its entirety. pic.twitter.com/QrFZjGbUNN
— James K. Filan (@FilanLaw) February 5, 2024
- This holds significance as the findings from these documents could impact the fine imposed on Ripple for their conduct post-complaint.
Technical Analysis: XRP price downtrend intact
XRP price is currently in a downward trend that started in October 2023, forming lower highs and lower lows with the recent updates in the SEC vs. Ripple lawsuit. The altcoin’s price has sustained above the $0.50 level, but it could continue its descent and a sweep of January 31 low of $0.4853 is likely.
XRP price could bounce from $0.4853 to climb towards $0.5429, which is the 23.6% Fibonacci retracement level of the decline from July to August. The green bars on the Awesome Oscillator (AO) on the daily timeframe signal that a price recovery is likely in XRP..
XRP/USDT 1-day chart
XRP price could find support at $0.4853 and in the event of further decline, price could nosedive to the August 2023 low of $0.4210.
Crypto ETF FAQs
What is an ETF?
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Is Bitcoin futures ETF approved?
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Is Bitcoin spot ETF approved?
Bitcoin spot ETF has been approved outside the US, but the SEC is yet to approve one in the country. After BlackRock filed for a Bitcoin spot ETF on June 15, the interest surrounding crypto ETFs has been renewed. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – got a victory in court, forcing the US regulator to review its proposal again. The SEC’s loss in this lawsuit has fueled hopes that a Bitcoin spot ETF might be approved by the end of the year.
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.
