- XRP struggles as SEC appeals $125 million ruling in Ripple lawsuit on Thursday.
- Pro-crypto attorneys and experts warn XRP traders of the impact of an appeal and how the altcoin could lose its legal clarity.
- XRP trades down to $0.5162, could sweep liquidity at $0.5000.
XRP extended its losing streak on Thursday. The asset slipped to $0.5208 as traders digested the recent developments in the Securities & Exchange Commission (SEC) lawsuit. The US financial regulator’s decision to file an appeal on Thursday of the Ripple lawsuit has invited criticism from Ripple executives and XRP holders.
Daily digest market movers: Ripple lawsuit dampens XRP holder sentiment
- SEC filed an appeal in the Ripple lawsuit. The regulator appealed the August ruling of Judge Analisa Torres, in which a $125 million settlement was imposed on the payment remittance firm.
- Pro-crypto attorney John Deaton has previously discussed the implications of an SEC appeal on the asset’s legal clarity and shared likely outcomes.
- Stuart Alderoty, Ripple’s Chief Legal Officer, said in a tweet on X:
“The SEC's decision to appeal is disappointing, but not surprising. This just prolongs what's already a complete embarrassment for the agency. The Court already rejected the SEC’s suggestion that Ripple acted recklessly, and there were no allegations of fraud and, of course, there were no victims or losses.”
- According to Alderoty, Ripple is considering whether to file a cross appeal and says the SEC’s lawsuit against the firm has been “misguided from the start.”
- CEO Brad Garlinghouse says if the agency was rational, the regulator would have moved on from the case long ago.
If Gensler and the SEC were rational, they would have moved on from this case long ago. It certainly hasn’t protected investors and instead has damaged the credibility and reputation of the SEC.
— Brad Garlinghouse (@bgarlinghouse) October 2, 2024
Somehow, they still haven't gotten the message: they lost on everything that… https://t.co/1hW7xVSL9b
Technical analysis: XRP risks further decline
Ripple has been in a downward trend since its July 2023 top of $0.9380. The altcoin could further drop by another 5.57% and sweep liquidity at $0.4877 at the August 6 low for XRP. The $0.6000 level is an important resistance level for Ripple, and $0.5000 is a key support.
XRP trades at $0.5162 at the time of writing.
The Moving Average Convergence Divergence (MACD) indicator flashes red histogram bars under the neutral line, signaling an underlying negative momentum in the XRP price trend.
XRP/USDT daily chart
A daily candlestick close above the 200-day Exponential Moving Average (EMA) at $0.5556 could invalidate the bearish thesis. XRP could then rally toward the 10-day EMA at $0.5721 in that case.
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin stabilizes at crucial support after major crash
Bitcoin (BTC) trades slightly down on Thursday, after declining over 7% this week, and holds near a crucial support level; a sustained close below this threshold could signal further declines ahead.
Bitcoin history says Satoshi Nakamoto may have tested 51% attacks on the BTC blockchain
Bitcoin edges slightly lower on Thursday, consolidating this week’s sharp correction and trading close to the psychologically important $60,000 level. The crypto community has discussed the likelihood and impact of a 51% attack on the Bitcoin blockchain.
Shiba Inu and PEPE hold recent gains as Bitcoin hovers around $61,000
Bitcoin’s (BTC) price halts the decline and hovers around $61,000 at the time of writing on Thursday, after erasing recent gains and losing around 4.5% in the last seven days time frame.
BNB price is set for decline if it closes below key support level
Binance Coin price trades slightly higher at around $548 on Thursday after declining 0.88% the previous day. It is currently trading near key support, and a sustained close beneath this level could indicate further declines.
Bitcoin Weekly Forecast: $70,000 mark on sight as bulls remain strong
Bitcoin has risen around 3% so far this week, breaking above its range upper limit of $64,700. This gain was supported by increased institutional demand for ETFs, which recorded inflows of more than $612 million this week.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.