XRP price extends losses to $0.61, erasing most weekly gains
- XRP price slid to $0.61 on Friday, extending a week-long correction after Monday’s surge.
- The Harvard Law School discussed the SEC’s enforcement in 2023 and highlighted the regulator’s high-profile loss in the Ripple lawsuit.
- The opening brief deadline for the regulator is March 22.
XRP price is down nearly 5% on Friday, extending a week-long correction since hitting its year-to-date high at $0.7440 on Monday. The altcoin’s price decline follows a broader retreat in cryptocurrency markets as XRP traders brace for an important deadline in the the Securities and Exchange Commission’s (SEC) lawsuit against Ripple on March 22, when the regulator is set to file their remedies-related opening brief.
Also read: XRP price plummets to $0.67 as holders brace for SEC vs. Ripple lawsuit deadline
Daily digest market movers: SEC gears up for key deadline after previous high-profile loss in Ripple case
- The US financial regulator’s remedies-related opening brief deadline is March 22.Nearly a week away before the event, XRP price has nosedived to a $0.61 low.
- The SEC brought 46 enforcement actions against crypto firms in 2023, a 53% increase from the regulator’s lawsuits related to crypto in 2022.
- The Harvard Law School Forum on Corporate Governance discussed the SEC vs. Ripple lawsuit. The discussion focused on how the regulator focused on whether digital assets will be considered securities and whether securities laws apply to cryptocurrencies.
- In the July 13 ruling, presiding Judge Analisa Torres ruled that Ripple’s sale of XRP on digital exchanges does not constitute the sale of securities. This is being referred to as a “high profile loss,” by Harvard Law since the regulator’s enforcement actions were then limited to Ripple’s institutional sales of XRP.
Harvard Law discusses SEC enforcement. Source: Corplaw.harvard.edu
Technical Analysis: XRP price could recoup its losses
XRP price declined to a low of $0.61 on Friday. The altcoin found support at $0.6117, the 61.8% Fibonacci retracement level, in its downward move. If the altcoin corrects further lower, it could drop to $0.5758, the 78.6% Fibonacci retracement of the altcoin’s rally to its 2024 peak. Once XRP price sweeps this last level, the altcoin could begin its recovery. XRP could make a comeback to its $0.7440 high.
The Relative Strength Index (RSI) reads 52.99, close to neutral and signaling indecisiveness among investors. The green bars on the Awesome Oscillator (AO) suggest the altcoin could see positive momentum and the uptrend remains intact, despite the weeklong correction in XRP.
XRP/USDT 1-day chart
A daily candlestick close below the $0.5758 level could invalidate the long-term recovery thesis for XRP and suggest further correction in the altcoin. The February low of $0.53 could become relevant as support for XRP.
Crypto ETF FAQs
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.
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.
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.
