Ripple co-founder Chris Larsen misses key deadline, XRP slips nearly 3%
- XRP dips to $0.5189, early on Wednesday, down nearly 3% on the day.
- Ripple co-founder Chris Larsen missed the October 18 deadline to submit a required notice of appearance.
- XRP could extend losses by nearly 7%, down to psychologically important $0.50 level.
Ripple (XRP) trades at $0.5189 on Wednesday, October 23. The key market movers for the native token of the XRPLedger are the Securities & Exchange Commission’s (SEC) lawsuit against Ripple.
Co-founder Chris Larsen recently made headlines for his XRP token donation to US presidential candidate Kamala Harris.
Daily Digest Market Movers: Ripple co-founder misses key legal deadline
- Ripple co-founder, Chris Larsen, missed the deadline to submit a notice of appearance, required for legal purposes.
- Marc Fagel, an attorney specialized in SEC enforcement and securities litigation, explains in a recent tweet on X that if Larsen’s legal team fails to file the necessary paperwork by the November 5 deadline, they risk losing the right to present oral arguments.
- This would end up weakening Larsen’s position in the case.
NOTE: This has nothing to do with the SEC, or any supposedly late filing (which wasn't late). This is directed at Larsen, who has not yet filed his appearance in this case.
— Marc Fagel (@Marc_Fagel) October 22, 2024
- Larsen’s actions, however, do not influence Ripple’s position in the lawsuit, and Ripple’s Chief Legal Officer, Stuart Alderoty, assuaged XRP holder’s concern by confirming that the firm will submit its pre-argument by October 25, 2024.
- Ripple’s submission will contest the SEC’s legal argument Judge Analisa Torres’ final ruling on XRP’s institutional sales.
- A timeline for appeal briefs will follow. The US financial regulator will likely be given up to 90 days for its response, which may extend the legal battle into mid-2025.
Technical analysis: XRP could extend losses by nearly 7%
XRP has been in a downward trend since its March 11 high of $0.7440. The Relative Strength Index (RSI) is sloping downward at 36. XRP could dip by 2.54% and sweep liquidity at $0.5000, the psychologically important price level for the altcoin.
Further correction could push XRP lower, and it could dip to the lower boundary of the Fair Value Gap (FVG) at $0.4780. This would imply a 7% decline in XRP price.
XRP/USDT daily chart
If XRP closes above resistance at $0.5550, it would invalidate the bearish thesis. XRP could rally toward the upper boundary of the FVG on the daily chart at $0.5778.
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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