XRP traders were trading around $0.55 on Friday, an increase of less than 1% on the day. The SEC’s appeal in the Ripple case is now public and does not raise questions about the legal status of altcoins. A July 2023 ruling in SEC v. Ripple gave XRP non-security status, but the SEC’s appeal leaves it off the table of legal argument.
Ripple (XRP) rose on Friday as traders digested developments in the Securities and Exchange Commission’s (SEC) appeal of the final court ruling. In August 2024, Judge Annalisa Torres imposed a $125 million fine for Ripple’s institutional XRP sales, maintaining the altcoin’s unsafe status in exchange-based trading.
XRP was trading around $0.55 early Friday morning.
Daily Digest Market Mover: SEC appeal in Ripple case rules out XRP
The US SEC is challenging the final judgment in the Ripple case, and appeal documents were made public on Friday. The document confirms that the SEC has not commented on the legal clarity of XRP, the native token of the XRP Ledger. According to Judge Torres’ July 2023 ruling, XRP tokens remain non-securities when traded on exchange platforms. XRP traders took note of the latest developments in the lawsuit and were pleased that the altcoin was gaining legal transparency, which would likely pave the way for the approval of an XRP exchange-traded fund (ETF) in the US. .
Technical analysis: XRP could rise by 10%
XRP broke out of the downtrend on August 9, 2024, and the altcoin has been range-bound ever since. XRP is up nearly 10% and could test resistance at $0.60, a psychologically important level for the token.
The relative strength index (RSI) is 47.41, below 50. The Moving Average Convergence Divergence (MACD) indicator flashes a green histogram bar above the neutral line, meaning there is potential positive momentum in the XRP price trend.
XRP/USDT daily chart
If there is a correction in XRP price, XRP could find support at the August 5th low of $0.5319 or the July 5th low of $0.3843.
Frequently asked questions about Bitcoin, altcoins, and stablecoins
Bitcoin is the largest cryptocurrency by market capitalization and is a virtual currency designed to function as money. This form of payment is not controlled by any particular person, group, or entity and eliminates the need for third parties to participate during financial transactions.
An altcoin is any cryptocurrency other than Bitcoin, but some consider Ethereum to be a non-altcoin because it is these two cryptocurrencies that forks occur. If this is true, Litecoin would be the first altcoin to fork from the Bitcoin protocol and thus be an “improved” version of it.
A stablecoin is a cryptocurrency that is designed to have a stable price, and its value is backed by the reserves of the asset it represents. To achieve this, the value of a stablecoin is pegged to a commodity or financial instrument, such as the US dollar (USD), and its supply is regulated by an algorithm or demand. The main purpose of stablecoins is to provide an on/off ramp for investors who wish to trade and invest in cryptocurrencies. Also, since cryptocurrencies are generally volatile, stablecoins allow investors to store value.
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the market capitalization of all cryptocurrencies combined. This clearly shows the interest in Bitcoin among investors. BTC’s dominance typically occurs around bull markets, where investors turn to relatively stable, high-market-cap cryptocurrencies like Bitcoin. Decreasing BTC dominance usually means investors are moving their capital and profits to altcoins in search of higher returns, which usually causes an explosive rally in altcoins.
