XRP was trading at $0.5334 on Tuesday, down 2% on the day. Uphold supports Ripple’s stablecoin RLUSD, the cryptocurrency exchange’s comment on platform integration. XRP is gearing up for a near 7% price decline.
Ripple (XRP) lost nearly 2% of its value on Tuesday, October 22nd. As XRP holders speculate on the future of altcoins and the Securities and Exchange Commission (SEC) files lawsuits against Ripple and Ripple, XRP Ledger’s native token could see losses increase. Utility of USD (RLUSD) and its adoption by institutions.
Ripple made several announcements during the Swell 2024 event, including a list of official exchange partners and a preview of the stablecoin launch, which has yet to be dated. Since then, focus has shifted to the SEC’s appeal of the final ruling in the Ripple case, the payments company’s counterclaim, and Bitwise’s XRP ETF filing.
Daily Digest Market Mover: Ripple’s latest developments weigh on XRP price
SEC v. Ripple litigation and appeals process, Ripple’s stablecoin RLUSD and related announcements, Bitwise’s XRP ETF filing, Ripple co-founder Chris Larsen’s donation to Kamala Harris’ presidential campaign, on Tuesday It became a major market fluctuation factor for altcoins. The SEC recently made legal documents related to the appeal available for viewing online. This revelation allays XRP holders’ concerns regarding the legal clarity of altcoins. The SEC has not raised any questions about the nature of XRP as a non-security, and the appeal is limited to the final decision in SEC v. Ripple. At its annual flagship event, Ripple Swell 2024, the company made a series of announcements, including a list of exchange partners and their roles, and plans for stablecoins. Although a launch date for Ripple USD has not been determined, Uphold and other strategic trading partners have announced support for the altcoin and integration with their platforms. Ripple’s stablecoin will also open the door to XRP utilities. According to Ripple President Monica Long, the XRP Ledger’s native token is likely to see accelerated adoption and positive impact. Bitwise’s XRP ETF application may see progress following the results of the US presidential election. Nate Geraci, president of ETF Store, said it’s unlikely the Solana ETF or XRPETF will emerge under President Kamala Harris.
Technical analysis: XRP risks falling by nearly 7%
Ripple has been on a downward trend since its high of $0.7440 on March 11th. Altcoins could widen losses and wipe out liquidity at the psychologically important $0.50 level. This level is within the imbalance zone between $0.4780 and $0.5136 on the XRP/USDT daily price chart.
Therefore, XRP is at risk of a nearly 7% (6.43%) decline in price. The altcoin could find support at the altcoin’s August 6 high of $0.5138.
The relative strength index (RSI) is 43. Although this is below the neutral level of 50, the RSI is sloping downwards, consistent with negative momentum in the token’s price trend.
XRP/USDT daily price chart
The bearish theory could be invalidated if the daily candlestick breaks above the $0.6000 level, which is a key resistance level for altcoins. XRP may test resistance at the lower end of the imbalance zone at $0.6069.
SEC vs. Ripple Litigation Frequently Asked Questions
According to a court ruling released on July 14, 2023, it depends on the transaction: For institutional investors or over-the-counter sales, XRP is a security. For retail investors who purchase tokens through programmatic sales on exchanges, on-demand liquidity services, and other platforms, XRP is not a security.
The U.S. Securities and Exchange Commission (SEC) has accused Ripple and its executives of raising more than $1.3 billion through an unregistered asset offering for the XRP token. Although the judge ruled that programmatic sales are not considered securities, the sale of XRP tokens to institutional investors is indeed an investment contract. In this last case, Ripple violated US securities laws and had to pay a $125 million civil penalty.
Depending on how you look at it, this ruling represents a partial victory for both Ripple and the SEC. Ripple scores a major victory over the fact that programmatic sales are not considered securities, and most of the assets targeted by the SEC are decentralized businesses that were primarily selling tokens to retail investors. This could bode well for the broader cryptocurrency sector, as it is being handled by a large number of investors. According to experts, via exchange platforms. Still, this ruling does little to answer the important question of what makes a digital asset a security, making this case a precedent for other unresolved cases affecting dozens of digital assets. It is not yet clear whether this will be the case. Conversations continue about how much decentralization is appropriate to avoid the “security” label, and where to draw the line between institutional and programmatic sales.
The SEC has stepped up enforcement actions against the blockchain and digital asset industry, charging platforms such as Coinbase and Binance with alleged violations of U.S. securities laws. The SEC claims that most crypto assets are securities and are therefore subject to strict regulation. Defendants could use some of the Ripple ruling to their advantage, but the SEC could also see reason to maintain its current strategy of enforcement regulation.
