XRP price drops below key support ahead of SEC’s remedies-related brief in Ripple lawsuit


  • XRP price declined to $0.62 on Thursday; the altcoin dropped below key support at $0.65. 
  • The SEC is preparing its remedies-related opening brief for the March 22 deadline in the Ripple lawsuit. 
  • Ripple’s CLO criticized the regulator, highlighting a comment by a judge on the SEC’s “vague and loosey-goosey” rules.

XRP price nosedived below an important support level for the altcoin, at $0.65. The altcoin is trading at $0.62 on Thursday. An important deadline in the SEC v. Ripple lawsuit is fast approaching and the regulator is set to present its remedies-related opening brief on March 22. 

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

Daily Digest Market Movers: XRP price tumbles ahead of important development in SEC v. Ripple lawsuit

  • XRP price is $0.62, early on Thursday. The altcoin has dropped below key support, while Bitcoin and altcoins begin their recovery from the recent bloodbath. 
  • The SEC is set to present its remedies-related opening brief on March 22, an important date for the regulator’s lawsuit against Ripple
  • Ripple’s Chief Legal Officer Stuart Alderoty commented on how the SEC’s rules are critiqued by judges in the US Court. Alderoty highlights that a judge called the regulator’s rules “vague and loosey-goosey” and said that he is not aware of further details in the proxy access case. 
  • The Judge cast doubt on the SEC’s argument in the case and Alderoty considers it a sign of the agency’s “vague” rules. 
  • Developments in the SEC v. Ripple lawsuit continue to influence XRP price, as the payment remittance firm continues to hold the altcoin. 

Technical Analysis: XRP price could correct further and sweep key psychological level

XRP price declined to $0.62 on Thursday. The altcoin is likely to sweep the psychologically important level of $0.60 before beginning a recovery. XRP price could resume its uptrend once the correction is complete. 

The Awesome Oscillator (AO) reveals that there is room for further correction in XRP. 

XRP

XRP/USDT 1-day chart 

XRP price could find support at the 50% Fibonacci retracement level of its rally to the 2024 high, at $0.5769, in the event of a decline. A daily candlestick close above the 78.6% Fibonacci retracement level at $0.6293 could invalidate the bearish thesis.

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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