- XRP price extends losses with recent development in SEC vs. Ripple lawsuit.
- SEC and Ripple have filed a joint sealing proposal related to the upcoming remedies-related brief on March 22.
- XRP price could extend losses to $0.54 in its downtrend.
XRP price declined below its psychological support at $0.60 on Wednesday. XRP Ledger’s native token downward trend extends as the US Securities and Exchange Commission (SEC) and Ripple have filed a joint proposal to seal confidential materials in the upcoming remedies brief, which will be held on March 22.
Also read: XRP price plummets to $0.67 as holders brace for SEC vs. Ripple lawsuit deadline
Daily digest market movers: XRP whales move the token in large volumes, lawsuit drags on
- XRP’s large-wallet investors have moved their holdings in transactions valued at $100,000 and higher. In the past 10 days, there have been over 14,000 large-volume XRP transfers by whales, according to Santiment data. The movements coincide with the decline in XRP price, signaling that whales are likely realizing losses on their token holdings.
- The Network Realized Profit/Loss metric from Santiment shows consistent dips, meaning whales on average are taking losses when offloading their XRP holdings. Generally, a series of realized losses after price dips could be a sign of capitulation from investors and an opportunity to buy.
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Network Realized Profit/Loss and Whale Transaction Count. Source: Santiment
- The SEC vs. Ripple lawsuit drags on with new developments on Wednesday. The two parties have filed a joint sealing proposal to govern sealing issues related to the upcoming remedies-related briefs that both parties file, according to the latest court filing. In practice, this means the remedies-related briefs will remain under wraps and won’t be available for the general public until March 26.
#XRPCommunity #SECGov v. #Ripple #XRP The parties have filed a joint sealing proposal “to govern sealing issues relating to the upcoming remedies-related briefing to be filed in this case.” pic.twitter.com/gaF2DLlWDN
— James K. Filan (@FilanLaw) March 19, 2024
Technical analysis: XRP price likely to extend losses
XRP price lost ground, dipping below the psychologically important level of $0.60 on Wednesday. The altcoin hit a low of $0.5685 early on Wednesday, breaking below support at $0.57. Both support levels were key to the altcoin’s recovery, so it is likely that the correction ensues.
XRP price could sweep support at $0.5407, the 78.6% Fibonacci retracement level of the altcoin’s rally to its year-to-date peak of $0.7440. The January 31 low of $0.4853 is the next support in the altcoin’s downtrend.
The red bars below the zero line on the Moving Average Convergence/Divergence indicator indicate there is negative momentum in XRP. This further supports a bearish thesis for XRP price.
XRP/USDT 1-day chart
XRP price could recoup its losses and reverse the downward trend if the altcoin sees a daily candlestick close above the $0.60 level and the Relative Strength Index (RSI) inches closer to neutral at 50. Currently, the RSI is at 44.49. Once the altcoin flips the $0.61 resistance into support, it could invalidate the bearish thesis and rally towards R1 at $0.65.
SEC vs Ripple lawsuit FAQs
It depends on the transaction, according to a court ruling released on July 14: For institutional investors or over-the-counter sales, XRP is a security. For retail investors who bought the token via programmatic sales on exchanges, on-demand liquidity services and other platforms, XRP is not a security.
The United States Securities & Exchange Commission (SEC) accused Ripple and its executives of raising more than $1.3 billion through an unregistered asset offering of the XRP token. While the judge ruled that programmatic sales aren’t considered securities, sales of XRP tokens to institutional investors are indeed investment contracts. In this last case, Ripple did breach the US securities law and will need to keep litigating over the around $729 million it received under written contracts.
The ruling offers a partial win for both Ripple and the SEC, depending on what one looks at. Ripple gets a big win over the fact that programmatic sales aren’t considered securities, and this could bode well for the broader crypto sector as most of the assets eyed by the SEC’s crackdown are handled by decentralized entities that sold their tokens mostly to retail investors via exchange platforms, experts say. Still, the ruling doesn’t help much to answer the key question of what makes a digital asset a security, so it isn’t clear yet if this lawsuit will set precedent for other open cases that affect dozens of digital assets. Topics such as which is the right degree of decentralization to avoid the “security” label or where to draw the line between institutional and programmatic sales are likely to persist.
The SEC has stepped up its enforcement actions toward the blockchain and digital assets industry, filing charges against platforms such as Coinbase or Binance for allegedly violating the US Securities law. The SEC claims that the majority of crypto assets are securities and thus subject to strict regulation. While defendants can use parts of Ripple’s ruling in their favor, the SEC can also find reasons in it to keep its current strategy of regulation by enforcement.
The court decision is a partial summary judgment. The ruling can be appealed once a final judgment is issued or if the judge allows it before then. The case is in a pretrial phase, in which both Ripple and the SEC still have the chance to settle.
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