XRP gains as SEC’s appeal faces jeopardy over deadline confusion in lawsuit
- XRP exchanges hands above $0.55 on Thursday, gains nearly 1%.
- Market participants digest the confusion over a missed appeals deadline in SEC vs. Ripple lawsuit.
- SEC spokesperson confirms that the appeal will proceed normally and the documents with legal arguments will be filed publicly soon.
Ripple (XRP) gains on Thursday as traders digest the uncertainty in the Securities & Exchange Commission’s (SEC) appeal in the lawsuit. A spokesperson from the US-based financial regulator has confirmed that the process has been followed and the relevant documents will be available publicly soon.
XRP traded at $0.5507 at the time of writing on Thursday.
Daily Digest Market Movers: SEC’s appeal to go as planned in Ripple lawsuit
- The SEC made headlines early on Thursday for confusion over the deadline to file an appeal against the final ruling in the Ripple lawsuit.
- The SEC filed an appeal against the $125 million settlement and raised questions about the Howey Test’s application to XRP. This test is used to identify whether a token is a security and whether federal securities laws apply to it within the SEC’s jurisdiction.
- Ripple’s Chief Legal Officer, Stuart Alderoty, and CEO Brad Garlinghouse slammed the SEC for appealing the August 2024 ruling.
- Confusion over the deadline for filing an appeal raised the question of whether the SEC’s appeal is valid and will be accepted in the lawsuit.
- A Fox Business journalist, Eleanor Terret, said on the X social media site that an SEC spokesperson has affirmed that the appeals process is moving forward as planned and the documents will soon be publicly available.
NEW: Heard back from the @SECGov this morning.
— Eleanor Terrett (@EleanorTerrett) October 17, 2024
According to a spokesperson:
“The appeal is proceeding normally, and the documents will be filed publicly soon."
Technical analysis: XRP eyes 8% gain in its path to $0.60 target
XRP has been in a downward trend since July 2023, as seen in the XRP/USDT daily chart. The altcoin could climb another 8.42% to hit its psychologically important level at $0.60. This is a key level for several XRP holders since the token has managed to break through on a few occasions since May 2024.
The $0.60 level is considered a hurdle in the path to further gains, toward the $0.7429 target that coincides with the July 2023 peak for XRP.
The Moving Average Convergence Divergence (MACD) indicator shows green histogram bars after a series of red histogram bars. The trend reversed recently, and there is underlying positive momentum in the altcoin’s price.
XRP/USDT daily chart
If Ripple closes below the $0.5000 level on Thursday, it would invalidate the bullish thesis. This is a level where XRP has swept liquidity on several occasions. Therefore, it is a key support for the altcoin.
Another key support is the July 5 low of $0.3823. If XRP’s correction ensues, the altcoin could dip to this level before attempting a recovery.
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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