XRP trades above $0.55 as SEC risks jeopardy in Ripple lawsuit with missed deadline
|- XRP exchanges hands above $0.55 on Thursday, gains nearly 1%.
- Market participants digest the confusion over a missed appeals deadline in SEC vs. Ripple lawsuit.
- SEC spokesperson confirms that the appeal will proceed normally and the documents with legal arguments will be filed publicly soon.
Ripple (XRP) gains on Thursday as traders digest the uncertainty in the Securities & Exchange Commission’s (SEC) appeal in the lawsuit. A spokesperson from the US-based financial regulator has confirmed that the process has been followed and the relevant documents will be available publicly soon.
XRP traded at $0.5507 at the time of writing on Thursday.
Daily Digest Market Movers: SEC’s appeal to go as planned in Ripple lawsuit
- The SEC made headlines early on Thursday for confusion over the deadline to file an appeal against the final ruling in the Ripple lawsuit.
- The SEC filed an appeal against the $125 million settlement and raised questions about the Howey Test’s application to XRP. This test is used to identify whether a token is a security and whether federal securities laws apply to it within the SEC’s jurisdiction.
- Ripple’s Chief Legal Officer, Stuart Alderoty, and CEO Brad Garlinghouse slammed the SEC for appealing the August 2024 ruling.
- Confusion over the deadline for filing an appeal raised the question of whether the SEC’s appeal is valid and will be accepted in the lawsuit.
- A Fox Business journalist, Eleanor Terret, said on the X social media site that an SEC spokesperson has affirmed that the appeals process is moving forward as planned and the documents will soon be publicly available.
NEW: Heard back from the @SECGov this morning.
— Eleanor Terrett (@EleanorTerrett) October 17, 2024
According to a spokesperson:
“The appeal is proceeding normally, and the documents will be filed publicly soon."
NEW: Heard back from the @SECGov this morning.
— Eleanor Terrett (@EleanorTerrett) October 17, 2024
According to a spokesperson:
“The appeal is proceeding normally, and the documents will be filed publicly soon."
Technical analysis: XRP eyes 8% gain in its path to $0.60 target
XRP has been in a downward trend since July 2023, as seen in the XRP/USDT daily chart. The altcoin could climb another 8.42% to hit its psychologically important level at $0.60. This is a key level for several XRP holders since the token has managed to break through on a few occasions since May 2024.
The $0.60 level is considered a hurdle in the path to further gains, toward the $0.7429 target that coincides with the July 2023 peak for XRP.
The Moving Average Convergence Divergence (MACD) indicator shows green histogram bars after a series of red histogram bars. The trend reversed recently, and there is underlying positive momentum in the altcoin’s price.
XRP/USDT daily chart
If Ripple closes below the $0.5000 level on Thursday, it would invalidate the bullish thesis. This is a level where XRP has swept liquidity on several occasions. Therefore, it is a key support for the altcoin.
Another key support is the July 5 low of $0.3823. If XRP’s correction ensues, the altcoin could dip to this level before attempting a recovery.
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.
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