- Ripple sees XRP Ledger developers propose direct lending on the blockchain, no smart contracts involved.
- XRP attempts to break past and close above $0.52 resistance for the sixth consecutive day.
- XRP holders keep eyes peeled for SEC reply brief, deadline is May 6.
Ripple (XRP) has failed to close above $0.52 for five consecutive days, struggling with the sticky resistance. XRP holders digested the news of US Securities and Exchange Commission’s (SEC) response to Ripple in its filing that addressed the issue of “expert testimony.” Traders now have their eyes peeled for the court’s decision on the next major concern, the $2 billion fine proposed by the SEC and Ripple’s counter of $10 million.
XRP Ledger developers have proposed the introduction of direct lending on the blockchain, without the involvement of smart contracts. The proposal has garnered interest in the XRP holder community.
Daily Digest Market Movers: Ripple holders await May 6 deadline while XRP Ledger proposes new development
- Ripple uses the decentralized public blockchain, the XRP Ledger for its cross-border payment settlement.
- XRP Ledger’s developers have proposed the introduction of direct lending to users using the Ledger, without developing a smart contract application. Developers propose the introduction of a mechanism for fixed-term, interest-accruing loans pooled from collective funds without requiring on-chain collateral.
- The proposed approach relies on off-chain underwriting and risk management and what developers refer to as a “First-Loss Capital protection scheme” to secure the protocol.
XLS-66d lays the foundation for a robust, decentralized lending protocol native to the #XRPLedger.
— RippleX (@RippleXDev) May 1, 2024
Highlights include:
✅ Simplicity & direct lending
✅ Protocol-native approach
✅ Modular & flexible design
Learn more: https://t.co/UKkcX23Usu
- The proposal has garnered interest from traders and is still in its initial stage, as XRP holders and the developer community share inputs on the idea.
- The SEC vs. Ripple lawsuit has been a major catalyst for XRP since 2020. XRP holders have digested the news of SEC’s response to Ripple, where the regulator addressed the concern surrounding “expert testimony.”
- The major issue in the lawsuit is the $2 billion fine proposed by the SEC and Ripple’s counter of $10 million.
- The SEC must file its reply brief by the May 6 deadline and this is likely to be the last court submission before Judge Analisa Torres decides upon the penalty to be imposed on the payment remittance firm, for unregistered securities sale.
Technical analysis: Ripple tackles resistance at $0.52
Ripple is faced with sticky resistance at $0.52. The altcoin has attempted to close past this level for five consecutive days with no success. In the weekly time frame, XRP price could decline further. There is a bearish crossover, where the signal line crosses over the Moving Average Convergence Divergence indicator, on the weekly chart, on April 8.
On the daily timeframe however, on April 22, the MACD line crossed over the signal line, supporting a recovery in XRP.
The $0.4868 level emerges as key support for XRP, on the weekly time frame.
This level has been respected as support since mid April, making it key to XRP recovery. A daily candlestick close below this level could invalidate the thesis of recovery.
XRP faces resistance at $0.5310, and $0.5574, the 50% and 61.8% Fibonacci retracement levels of the decline between April 9 and 13. $0.5787 is a key resistance level on the weekly chart.
XRP/USDT 1-day chart
XRP could find support at $0.4868 (weekly support) and April 19 low of $0.4665 in the event of further correction in Ripple.
SEC vs Ripple lawsuit FAQs
It depends on the transaction, according to a court ruling released on July 14: For institutional investors or over-the-counter sales, XRP is a security. For retail investors who bought the token via programmatic sales on exchanges, on-demand liquidity services and other platforms, XRP is not a security.
The United States Securities & Exchange Commission (SEC) accused Ripple and its executives of raising more than $1.3 billion through an unregistered asset offering of the XRP token. While the judge ruled that programmatic sales aren’t considered securities, sales of XRP tokens to institutional investors are indeed investment contracts. In this last case, Ripple did breach the US securities law and will need to keep litigating over the around $729 million it received under written contracts.
The ruling offers a partial win for both Ripple and the SEC, depending on what one looks at. Ripple gets a big win over the fact that programmatic sales aren’t considered securities, and this could bode well for the broader crypto sector as most of the assets eyed by the SEC’s crackdown are handled by decentralized entities that sold their tokens mostly to retail investors via exchange platforms, experts say. Still, the ruling doesn’t help much to answer the key question of what makes a digital asset a security, so it isn’t clear yet if this lawsuit will set precedent for other open cases that affect dozens of digital assets. Topics such as which is the right degree of decentralization to avoid the “security” label or where to draw the line between institutional and programmatic sales are likely to persist.
The SEC has stepped up its enforcement actions toward the blockchain and digital assets industry, filing charges against platforms such as Coinbase or Binance for allegedly violating the US Securities law. The SEC claims that the majority of crypto assets are securities and thus subject to strict regulation. While defendants can use parts of Ripple’s ruling in their favor, the SEC can also find reasons in it to keep its current strategy of regulation by enforcement.
The court decision is a partial summary judgment. The ruling can be appealed once a final judgment is issued or if the judge allows it before then. The case is in a pretrial phase, in which both Ripple and the SEC still have the chance to settle.
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.
Recommended Content
Editors’ Picks
Top 3 meme coins Dogecoin, Shiba Inu, Bonk: DOGE accumulation, SHIB update, BONK listing fuel gains
Most meme coins ranked in the top 10 by market capitalization, including Dogecoin (DOGE), Shiba Inu (SHIB), Bonk (BONK), have extended their gains from the past 7 days in the past 24 hours.
Is the crypto bull run back? Premium
Bitcoin’s ascent to $65,000 seems to have breathed hope into the choppy crypto markets. Some altcoins have shot up 10% to 20% due to BTC’s comeback. Investors wonder if this is the resumption of the crypto bull run.
AI tokens see explosive gains as Vitalik Buterin says GPT 4 passed the Turing test
Vitalik Buterin commented on whether OpenAI’s GPT 4 passed the Turing test, in an update on Farcaster. Buterin believes GPT 4 has passed the test, meaning it exhibits intelligent behaviour equivalent to or indistinguishable from humans.
XRP sustains above $0.51, eyes further gain as whales accumulate Ripple tokens
Ripple is being accumulated by large wallet investors as XRP holders await a court ruling in the Securities and Exchange Commission’s lawsuit against the firm. The altcoin’s accumulation by whales is a positive sign for XRPLedger’s native token.
Bitcoin: Why BTC is close to a bottom
Bitcoin (BTC) price efforts of a recovery this week have been countered by selling pressure during the onset of the American session. However, the downside potential appears to have been capped.