- SEC vs. Ripple lawsuit ends with Judge Torres ruling that Ripple is likely to violate the law with their willingness to push boundaries.
- Judge slammed Ripple with $125 million in fines for institutional sales of XRP, a federal securities law violation by the payments firm.
- XRP broke through $0.60 resistance, erasing recent losses, while Bitcoin and Ethereum struggled under key support on Thursday.
Ripple (XRP) led gains among top 10 cryptocurrencies on Thursday after a historic court ruling in the Securities & Exchange Commission (SEC) lawsuit. Judge Analisa Torres considered the likelihood of the payment remittance firm violating federal securities law in the future and hit Ripple with a $125 million penalty.
Daily Digest Market Movers: Ripple lawsuit ends, but SEC could appeal ruling
- Ripple lawsuit ended with Judge Analisa Torres asking the firm to pay $125 million in penalties for the likelihood that it eventually crosses the line by violating federal securities law in the future.
- As traders digested the news of the SEC vs. Ripple ruling, pro-crypto attorney Fred Rispoli explained that Judge Torres recognized the absence of litigation in her final ruling.
- In her ruling, Judge Torres says that “The Court finds that Ripple’s willingness to push the boundaries of the order evinces a likelihood that it will eventually, if it has not already crossed the line. On this balance the Court finds that there is a reasonable probability of future violations, meriting the issuance of an injunction."
- The ruling judge slammed Ripple with $125 million in fines, and predicted a “violation” is likely, if it hasn’t occurred already.
- Attorney Rispoli interprets this as Judge Torres telling the two parties, "You two better work out on your own whatever is happening now. I'll be pissed if you come back to me."
IMO this is a recognition that, absent legislation, any particular sales event is highly contextual as to whether it's a violation. It's almost as if Torres is saying, "You two better work out on your own whatever is happening now. I'll be pissed if you come back to me."
— Fred Rispoli (@freddyriz) August 8, 2024
- SEC could appeal Judge Torres’ ruling in the lawsuit.
- XRP has received legal clarity in the final ruling. However, an appeal could change that and influence investor confidence and demand for the altcoin negatively.
Technical analysis: XRP could rally to $0.75, November 2023 peak
Ripple rallied above key resistance at $0.60 and trades at $0.62 at the time of writing. The altcoin could extend gains by over 19% and hit its November 2023 peak of $0.75 in its attempt to break out of the multi-month downtrend.
The XRP/USDT daily chart shows that the altcoin has attempted to break out of the downward trend. A daily candlestick close above $0.61 could validate the bullish thesis. Relative Strength Index (RSI) reads 60.42, well above the neutral level.
XRP faces resistance at $0.66, the 50% Fibonacci retracement of the decline from the July 13 top of $0.93 to the July 5 low of $0.38.
XRP/USDT daily chart
Ripple could find support at the Fair Value Gap (FVG) between $0.51 and $0.57, as seen in the XRP/USDT daily chart.
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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