Ripple likely closer to lawsuit victory as SEC backs down on classifying Solana, ADA, MATIC as securities
|- Ripple lawsuit ruling is expected this week as July draws to a close.
- SEC retracted its request for security status of Solana, Cardano and MATIC among other assets.
- XRP extended gains by nearly 3% early on Tuesday, climbing to $0.6183.
Ripple (XRP) traders expect the lawsuit brought by the Securities & Exchange Commission (SEC) to end this week. A pro-crypto attorney, Fred Rispoli, had predicted the end of SEC vs. Ripple lawsuit by July 2024.
The SEC’s move to retract the request for “security status” of Solana, Cardano and MATIC has filled XRP traders with hope for a positive development in the lawsuit.
XRP trades above the key psychological level of $0.60.
Daily digest market movers: Ripple ruling could see positive turn as SEC backs down on security status for these cryptos
- The SEC has retracted its request for “security status” of Solana (SOL), Cardano (ADA) and Polygon (MATIC).
- XRP has legal clarity on its status as a non-security in secondary market transactions, meaning that when traded on exchanges the altcoin is not a security.
- The gray area is the institutional sales of the asset, and this is likely to be addressed in the final ruling in the SEC vs. Ripple lawsuit.
- Judge Analisa Torres had granted a partial victory to Ripple when XRP was declared a non-security in July 2023.
- XRP traders are closely watching the lawsuit for key developments and an end or outcome this week.
- Ripple update: What to expect from XRP and Ripple lawsuit this week.
- Attorney Fred Rispoli, a pro-crypto lawyer, set a deadline of July 31 in his prediction for the lawsuit ruling.
- The Judge is expected to rule on the issue of “fines” or “settlement” to be imposed on the payment remittance firm for the alleged violation of securities laws.
- It also remains to be seen whether the SEC accepts XRP as a non-security or appeals Judge Torres ruling at a later time.
- Rumors of a settlement between the two parties were doing the rounds prior to the closed door meeting on July 25.
- There is no further update in the lawsuit since the two parties filed their letters and responses on the matter of “supplemental authority” or Judge Amy Berman Jackson accepting the XRP ruling as precedent in the SEC vs. Binance lawsuit.
Technical analysis: Ripple could extend gains by 10%
Ripple is trending higher, forming higher highs and higher lows since July 12, as seen in the XRP/USDT daily chart. XRP is likely to sweep support at $0.5632, collect liquidity and extend gains by nearly 10% after. The target is $0.6666, the 78.6% Fibonacci retracement level of the decline from the March 11 peak of $0.7440 to the July 5 low of $0.3823.
Ripple faces resistance at $0.6058, the 61.8% Fibonacci retracement level and the March 25 high of $0.6629.
The Moving Average Convergence Divergence (MACD) indicator supports the thesis of a decline in XRP price since the MACD line crossed under the signal line, marked by a circle in the chart below. This signals underline negative momentum in Ripple’s price trend.
XRP/USDT daily chart
Ripple could sweep lows of $0.5205, the 38.2% Fibonacci retracement on the daily time frame.
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
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