XRP price tests $0.60 support as AMM makes comeback on XRPLedger

Ripple sees AMM back in action on the XRPLedger mainnet after amendment on Friday.
XRP price tests $0.60 support, price ranges below $0.62 on April 12.
Ripple CLO shared the Second Circuit Court of Appeals refusal to reconsider their decision, considered a loss for the SEC.

Ripple (XRP) price is testing support at the psychologically important $0.60 level on Friday, despite Bitcoin price rally to $70,900 on April 12. XRP price remains unaffected by Bitcoin’s recent gains.

XRP is likely influenced by the recent Automated Market Maker (AMM) amendment, developments in the Securities and Exchange Commission (SEC) lawsuit against Ripple and related court cases, like Govil, Coinbase lawsuit.

Daily digest market movers: XRPLedger AMM is live again, fails to catalyze gains in Ripple

XRPLedger’s ‘fixAMMOverflowOffer’ amendment went live early on Friday. The AMM is back in action on the mainnet and this marks a milestone for Ripple’s blockchain.

The ‘fixAMMOverflowOffer’ amendment went live earlier today.

The AMM is back in action on XRPL mainnet—a huge milestone for the XRP Ledger!https://t.co/Ella5VFGmg pic.twitter.com/fqiPMzDFcu
— RippleX (@RippleXDev) April 11, 2024

Ripple CLO Stuart Alderoty shared details of a lawsuit in which the Second Circuit rejected the SEC’s appeal.
The SEC alleges that Aron Govil used his position as a controlling shareholder to cause Cemtrex to engage in a variety of fraudulent conduct. The regulator is seeking disgorgement of misappropriated funds, however the Second Circuit denied the SEC’s appeal.
Alderoty considers it the SEC’s loss since the Second Circuit refused to reconsider their decision in Govil which held that if a buyer suffers no financial loss, then the regulator is not entitled to disgorgement from the seller.
This lawsuit decision has an impact on the Ripple case, since the SEC is seeking over $2 billion in fines from the payment remittance firm.
The SEC seeks the fines for the institutional sales of XRP made by the payment remittance firm, and violation of securities laws. It alleges that Ripple violated securities laws.
The Govil decision therefore sheds light on what XRP holders can expect from the SEC’s appeal in the Ripple lawsuit.
Pro Ripple attorney Bill Morgan commented on the Govil lawsuit and its impact on the Ripple case. Morgan said that no conclusion can be drawn until Ripple’s brief and counter arguments against SEC’s motion are made public.

Why? It’s not big if Torres accepts the SEC’s argument that some of the XRP institutional investors suffered pecuniary harm because Ripple failed to disclose to them discounts offered to favored institutional investors. And we cannot really assess the strength of the SEC’s… https://t.co/2U51n8QRwj
— bill morgan (@Belisarius2020) April 12, 2024

Technical analysis: XRP price ranges below $0.62, fails to rally

Ripple price is trading within a tight range between the April 4 low of $0.5623 and April 9 high of $0.6431. XRP price is testing the $0.60 support on Friday. This is considered a key psychological level for the altcoin, it acted as support throughout March and April 2024.

A successful retest of $0.60 would mean XRP price is likely to make its way to the April 9 high of $0.6431. It faces resistance at $0.6336, a level that the altcoin has failed to break in the past two weeks.

XRP/USDT 1-day chart

A daily candlestick close below $0.6027, the 50% retracement of XRP’s climb to April 9 could invalidate the bullish thesis. XRP price could find support at $0.5851 and $0.5386, two levels that have held throughout mid March and April 2024.

Open Interest, funding rate FAQs

How does Open Interest affect cryptocurrency prices?

Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.

How does Funding rate affect cryptocurrency prices?

Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.

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