XRP tumbles to $0.54 as Ripple and SEC agree to request for stay of $125 million fine


  • Ripple filed a letter requesting stay of monetary portion of the court’s judgment in the SEC vs. Ripple lawsuit and received SEC approval. 
  • The two parties consent on the request for temporary postponement of the $125 million fine. 
  • XRP slips to $0.54 as the altcoin faces a correction in the aftermath of the recent correction in crypto prices earlier this week. 

Ripple (XRP) dipped to $0.54, erasing 1.81% of its value on the day. The payment remittance firm had submitted a letter requesting a stay on the monetary portion, the $125 million settlement in its recent lawsuit, on August 7. The Securities & Exchange Commission (SEC) consented to the request. 

Daily digest market movers: Ripple and SEC agree to postpone the monetary fines imposed in lawsuit

  • The final ruling in the SEC vs. Ripple lawsuit was considered a partial victory for both parties. The ruling judge, Analisa Torres, upheld the ruling that XRP is not a security in 
  • secondary market transactions on crypto exchange platforms. 
  • A fine of $125 million was imposed on Ripple for securities law violation and the firm requested a stay on this monetary portion of the ruling on August 7. 
  • The letter requesting this temporary postponement of the fine received the SEC’s consent as well, per September 4 filing in the court. 
  • XRP traders are waiting to see whether the regulator will appeal the final ruling in the lawsuit. 
  • If there is an appeal, it could negatively impact XRP’s legal clarity. 

Technical analysis: XRP could extend losses by nearly 5%

XRP has been in a multi-month downward trend that started on July 13, when the altcoin was at $0.9380. XRP is likely to extend losses by 4.72% and sweep liquidity at $0.5188. This marks a key support level for the altcoin as it is the lower boundary of a Fair Value Gap (FVG). 

The Moving Average Convergence Divergence (MACD) shows red histogram bars under the neutral line, which signifies that there is underlying negative momentum in the XRP price trend. 

XRP

XRP/USDT daily chart

A daily candlestick close above $0.5785 could invalidate the bearish thesis. XRP could target the psychologically important $0.60 level. 

Open Interest, funding rate FAQs

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.

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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