Ripple celebrates landmark 2023 win against SEC in Q2 report, but XRP trends lower
- Ripple released its Q2 report early on Friday, celebrating the lawsuit win from July 2023 and expressing confidence in the final ruling.
- Report reveals Binance, Bybit and Upbit are top exchanges that dominate XRP trading volume.
- XRP noted over 65% decline in transactions in Q2, erased 6% of its value on Friday.
Ripple (XRP) published its Q2 2024 report, highlighting the QoQ changes in on-chain activity, dominant crypto exchanges contributing to XRP trade volume, regulatory developments and lawsuit updates.
XRP erased nearly 6% of its value and is down to $0.56 early on Friday.
Daily digest market movers: Ripple lauds past laurels, XRP traders await SEC lawsuit ruling
- In its Q2 report, Ripple celebrates its “landmark win” against the Securities & Exchange Commission (SEC) in Judge Analisa Torres’ 2023 ruling.
- Judge Torres had provided legal clarity on the status of XRP, stating that the altcoin is “not a security” in secondary-market transactions, meaning on exchange platforms.
- XRP is treated as a security in the institutional sales made by Ripple, and the firm is awaiting the judge’s final decision on this issue.
- Ripple expressed its confidence that the Judge will take a “fair approach” and that the legal clarity on XRP is here to stay.
Ripple Q2 2024 report
- Ripple noted that the firm is awaiting the final decision in the SEC lawsuit.
- The cross-border payment remittance firm noted a steep decline in on-chain activity in XRP QoQ. The report states that this is common to other cryptocurrencies as well and quotes a 65.6% decline in transactions QoQ.
- Binance, Bybit and Upbit were the dominant exchanges in XRP transaction volume.
Technical analysis: XRP loses key support, drops 6%
Ripple broke out of its downward trend on July 13. XRP erased nearly 6% of its value on Friday and is likely to extend losses further. Ripple could sweep liquidity in the Fair Value Gap (FVG) between $0.4780 and $0.5136. Ripple could find support at the psychological support level at $0.50.
Once the altcoin sweeps liquidity, it is expected to resume its rally toward its target at $0.70. This marks nearly 25% gains from the current price level.
XRP/USDT daily chart
A daily candlestick close above $0.62 could invalidate the thesis of further correction and XRP could rally toward its $0.70 target.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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