XRP price dips ahead of key deadline in SEC vs. Ripple lawsuit, regulator cites default judgment

• XRP price nosedived below the key psychological support at $0.60 in Tuesday’s crypto market crash. 
• Ripple’s CLO highlighted the SEC’s “bad faith practice” as the regulator cited a default summary judgment in its lawsuit. 
• SEC’s lawsuit against Coinbase could influence the outcome of the regulator’s case against Ripple.

XRP price slipped below the key psychological level at $0.60 as Bitcoin experienced a sharp correction after briefly touching a fresh all-time high on Tuesday. The altcoin, which recovered slightly on Wednesday from a low at $0.5386, could see further declines with the upcoming developments in the SEC vs. Ripple lawsuit. 

The payment remittance firm’s Chief Legal Officer Stuart Alderoty said that the Securities and Exchange Commission (SEC) has shown “a bad faith practice” by citing a default judgment from a relevant legal issue. 

Also read: XRP price eyes $0.70 target, attorney states Ripple’s influence on the altcoin is on a decline

Daily digest market movers: Ripple CLO points out SEC actions are in bad faith ahead of key deadline 

• Ripple CLO Stuart Alderoty said on his X account that the SEC told a judge that she should consider a decision from a different court, without disclosing that it was a “default judgment.”
• Alderoty explained that a default judgment is one where no one shows up to defend themself and the relevant legal issue was therefore never actually litigated. Ripple’s CEO considers this “bad faith” and points out that the regulator is engaging in such practices amid the legal battle with the SEC. 

• Investors are currently awaiting a ruling in the SEC vs. Coinbase case, which could be pivotal to the SEC’s legal battle against Ripple. 
• Coinbase filed a motion to dismiss the case in August, arguing that the SEC lacks the authority to regulate exchanges. If the Judge grants the exchange’s motion, it could mean the end of the SEC’s “regulation by enforcement” approach. 
• A settlement in the SEC vs. Coinbase case could end the regulator’s plan to appeal the Programmatic Sales ruling. 

Technical Analysis: XRP price could suffer further decline

The recent XRP price decline could extend to $0.5769, the 50% Fibonacci retracement of its climb to its 2024 peak of $0.6685. The altcoin wiped out its gains, hitting a low of $0.5386 on Tuesday. The altcoin’s price recovered somewhat on Wednesday to $0.6058, but it is struggling to decisively overcome. the psychologically important level of $0.60. 

Momentum indicators present a mixed picture. While the red bars on the Awesome Oscillator (AO) signal XRP price could see a further correction, the green bars on the Moving Average Convergence/Divergence (MACD) indicator signal that there is positive momentum.

XRP/USDT 1-day chart

A daily candlestick close above the $0.60 level could invalidate the bearish thesis and XRP price could resume its rally towards its 2024 high of $0.6685.

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