XRP takes a hit as traders digest SEC appeal in Ripple lawsuit
- 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.
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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