XRP climbs past $0.51 as Ripple motion receives SEC response
- Ripple and the SEC continue their legal battle, now focused on the validity of certain materials and testimonies.
- The SEC highlights the legal question of whether Ripple’s institutional clients suffered damages, as some received a higher discount than others.
- XRP closed above $0.51 on Monday and continued climbing higher early on Tuesday.
Ripple (XRP) trades broadly sideways on Tuesday after closing above $0.51 on Monday as the payment firm’s legal battle against the US Securities and Exchange Commission (SEC) persists, now in the form of crossed motions to determine which materials and testimonies have to be included in the case.
The SEC filed on Monday its response to Ripple’s motion to strike new expert materials, which requested the court to dismiss testimony from SEC accountant Andrea Fox. The US regulator had shared new materials in its previous filings. Ripple labeled these materials as the testimony of the expert. The two parties are now arguing over the status of the SEC accountant Andrea Fox’s statements. Whether Fox’s statements will be considered as a summary or an expert testimony, the decision lies with the court.
The lawsuit’s focus has shifted from XRP sales made to institutional investors to the nature of one Andrea Fox’s comments. XRP holders have their eyes peeled for the next update, in May 2024, when the court rules on the lawsuit.
Daily digest market movers: SEC responds to Ripple motion in April 29 filing
- The SEC had requested Ripple’s financial statements and details about XRP institutional sales from both before and after the lawsuit. Upon receiving Ripple’s financial statements, the regulator brought in Assistant Chief Accountant at the SEC, Andrea Fox, to share a summary of the findings from the statements.
- Ripple’s lawyers considered Fox’s findings as “undisclosed expert testimony.” However, the SEC argues that it is a simple summary prepared from financial statements through the application of basic arithmetic.
- Ripple filed a motion to strike this testimony on April 23. The regulator stated that the claim is incorrect in Monday’s response. Attorney James Filan shares the filing in a tweet on X.
#XRPCommunity #SECGov v. #Ripple #XRP @Ripple has filed a Motion to Strike new expert materials the SEC submitted in support of its Motion for Remedies and Entry of Final Judgment.https://t.co/k8M84DxDiz
— James K. Filan (@FilanLaw) April 22, 2024
- The SEC filed its response to Ripple’s motion on Monday, April 29. In its filing, the regulator requested the court to deny Ripple’s motion and noted that the summary shared by the expert Andrea Fox’s statement is consistent with another SEC accountant summary witness declaration that has already been allowed by Judge Analisa Torres.
- The SEC stands by Fox’s declaration, says it is “proper summary evidence,” and states that the cross-border payment remittance firm has unsuccessfully raised the same argument before in the course of the lawsuit.
- Ripple did not question the correctness of Fox’s claim, while the SEC argues that Fox did not give an opinion on “pecuniary harm” or damages caused to institutional clients of Ripple’s ODL, supporting its stand on “summary.”
- The regulator states whether there was any pecuniary harm is a legal question. Attorney Filan shared the SEC's filing in his tweet on X.
#XRPCommunity #SECGov v. #Ripple #XRP The @SECGov has filed its opposition to @Ripple’s Motion to Strike new expert materials. pic.twitter.com/qwVyGJI8ZS
— James K. Filan (@FilanLaw) April 29, 2024
- Ripple had countered the SEC’s demand for over $2 billion in fines and damages in its recent filing. The firm said the fine should not exceed $10 million. Judge Sarah Netburn is expected to rule on the SEC and Ripple’s requests in May 2024.
Technical analysis: XRP sustains above $0.51
Ripple sustained above $0.51 as the SEC filed its response to the firm’s motion. The $0.53 level is the closest resistance for Ripple. While Ripple has broadly consolidated in the last few days, overcoming this level would be key to start an uptrend as it has acted as support throughout mid-February, March and early April.
The Relative Strength Index (RSI), a momentum indicator used to measure whether an asset is overbought or oversold, currently reads 41.43, up from the 39.65 observed on Sunday. The RSI, which is slowly climbing towards the neutral level at 50, is in agreement with price and no divergence is observed.
The Moving Average Convergence/Divergence (MACD) indicator shows green histogram bars above the neutral line and a recent crossover of the indicator above the signal line was noted on April 22, a bullish sign for XRP.
If XRP continues climbing higher, key resistances are at $0.53, $0.55 and $0.64, which align with the 50%, 61.8% and 100% Fibonacci retracement levels of the decline between April 9 top of $0.64 to April 13 low of $0.42.
XRP/USDT 1-day chart
A daily candlestick close below $0.50, a support level where XRP has hovered for the past four days, could invalidate the bullish thesis. In a correction, XRP could find support at the April 19 low of $0.46 and the April 13 low of $0.42.
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.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
