XRP declines 4% as Ripple executives slam SEC appeal of Ripple case
- XRP struggles as SEC appeals $125 million ruling in Ripple lawsuit on Thursday.
- Pro-crypto attorneys and experts warn XRP traders of the impact of an appeal and how the altcoin could lose its legal clarity.
- XRP trades down to $0.5162, could sweep liquidity at $0.5000.
XRP extended its losing streak on Thursday. The asset slipped to $0.5208 as traders digested the recent developments in the Securities & Exchange Commission (SEC) lawsuit. The US financial regulator’s decision to file an appeal on Thursday of the Ripple lawsuit has invited criticism from Ripple executives and XRP holders.
Daily digest market movers: Ripple lawsuit dampens XRP holder sentiment
- SEC filed an appeal in the Ripple lawsuit. The regulator appealed the August ruling of Judge Analisa Torres, in which a $125 million settlement was imposed on the payment remittance firm.
- Pro-crypto attorney John Deaton has previously discussed the implications of an SEC appeal on the asset’s legal clarity and shared likely outcomes.
- Stuart Alderoty, Ripple’s Chief Legal Officer, said in a tweet on X:
“The SEC's decision to appeal is disappointing, but not surprising. This just prolongs what's already a complete embarrassment for the agency. The Court already rejected the SEC’s suggestion that Ripple acted recklessly, and there were no allegations of fraud and, of course, there were no victims or losses.”
- According to Alderoty, Ripple is considering whether to file a cross appeal and says the SEC’s lawsuit against the firm has been “misguided from the start.”
- CEO Brad Garlinghouse says if the agency was rational, the regulator would have moved on from the case long ago.
If Gensler and the SEC were rational, they would have moved on from this case long ago. It certainly hasn’t protected investors and instead has damaged the credibility and reputation of the SEC.
— Brad Garlinghouse (@bgarlinghouse) October 2, 2024
Somehow, they still haven't gotten the message: they lost on everything that… https://t.co/1hW7xVSL9b
Technical analysis: XRP risks further decline
Ripple has been in a downward trend since its July 2023 top of $0.9380. The altcoin could further drop by another 5.57% and sweep liquidity at $0.4877 at the August 6 low for XRP. The $0.6000 level is an important resistance level for Ripple, and $0.5000 is a key support.
XRP trades at $0.5162 at the time of writing.
The Moving Average Convergence Divergence (MACD) indicator flashes red histogram bars under the neutral line, signaling an underlying negative momentum in the XRP price trend.
XRP/USDT daily chart
A daily candlestick close above the 200-day Exponential Moving Average (EMA) at $0.5556 could invalidate the bearish thesis. XRP could then rally toward the 10-day EMA at $0.5721 in that case.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
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.
