XRP price drops below key support ahead of SEC’s remedies-related brief in Ripple lawsuit

XRP price declined to $0.62 on Thursday; the altcoin dropped below key support at $0.65.
The SEC is preparing its remedies-related opening brief for the March 22 deadline in the Ripple lawsuit.
Ripple’s CLO criticized the regulator, highlighting a comment by a judge on the SEC’s “vague and loosey-goosey” rules.

XRP price nosedived below an important support level for the altcoin, at $0.65. The altcoin is trading at $0.62 on Thursday. An important deadline in the SEC v. Ripple lawsuit is fast approaching and the regulator is set to present its remedies-related opening brief on March 22.

Also read: XRP price dips ahead of key deadline in SEC vs. Ripple lawsuit, regulator cites default judgment

Daily Digest Market Movers: XRP price tumbles ahead of important development in SEC v. Ripple lawsuit

XRP price is $0.62, early on Thursday. The altcoin has dropped below key support, while Bitcoin and altcoins begin their recovery from the recent bloodbath.
The SEC is set to present its remedies-related opening brief on March 22, an important date for the regulator’s lawsuit against Ripple.
Ripple’s Chief Legal Officer Stuart Alderoty commented on how the SEC’s rules are critiqued by judges in the US Court. Alderoty highlights that a judge called the regulator’s rules “vague and loosey-goosey” and said that he is not aware of further details in the proxy access case.

I don’t know much about this proxy access case argued in the 5th Circuit yesterday, but when a judge says the SEC’s rules are “so vague and loosey-goosey that nobody knows whether they’ll be at risk…,” she may be on to something. NCPPR v SEC. pic.twitter.com/Nj08JTpaEu
— Stuart Alderoty (@s_alderoty) March 6, 2024

The Judge cast doubt on the SEC’s argument in the case and Alderoty considers it a sign of the agency’s “vague” rules.
Developments in the SEC v. Ripple lawsuit continue to influence XRP price, as the payment remittance firm continues to hold the altcoin.

Technical Analysis: XRP price could correct further and sweep key psychological level

XRP price declined to $0.62 on Thursday. The altcoin is likely to sweep the psychologically important level of $0.60 before beginning a recovery. XRP price could resume its uptrend once the correction is complete.

The Awesome Oscillator (AO) reveals that there is room for further correction in XRP.

XRP/USDT 1-day chart

XRP price could find support at the 50% Fibonacci retracement level of its rally to the 2024 high, at $0.5769, in the event of a decline. A daily candlestick close above the 78.6% Fibonacci retracement level at $0.6293 could invalidate the bearish thesis.

Open Interest, funding rate FAQs

How does Open Interest affect cryptocurrency prices?

Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.

How does Funding rate affect cryptocurrency prices?

Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.