XRP traded above $0.55 on Thursday, up nearly 1%. Market participants are digesting the confusion caused by the passing of the SEC v. Ripple appeal deadline. An SEC spokesperson confirmed that the appeal will proceed as usual and documents containing legal arguments will be released soon.
Ripple (XRP) rose on Thursday as traders digested the uncertainty of a Securities and Exchange Commission (SEC) appeal in the case. A spokesperson for the US-based financial regulator confirmed that the process had been completed and relevant documents would be released soon.
XRP is trading at $0.5507 at the time of writing on Thursday.
Daily Digest Market Movers: SEC appeals to keep Ripple lawsuit going as planned
The SEC made headlines early Thursday morning for confusion over the deadline to appeal the final ruling in the Ripple case. The SEC appealed the $125 million settlement, raising questions about the application of the Howey Test to XRP. This test is used to identify whether a token is a security and is subject to federal securities laws within the jurisdiction of the SEC. Ripple’s Chief Legal Officer Stuart Alderroti and CEO Brad Garlinghouse criticized the SEC for appealing the August 2024 ruling. Confusion over appeal deadlines has raised questions about whether the SEC’s appeals are valid and admissible in litigation. FOX Business journalist Eleanor Terret said on the X social media site that an SEC spokesperson assured her that the appeals process is proceeding as planned and that documents will be released soon.
NEW: Reply from @SECGov this morning.
According to a spokesperson,
“The appeal is proceeding normally and documents are expected to be released soon.”
— Eleanor Terrett (@EleanorTerrett) October 17, 2024
Technical analysis: XRP eyes 8% rise towards $0.60 target
As seen on the XRP/USDT daily chart, XRP has been in a downtrend since July 2023. The altcoin could further rise by 8.42% and reach the psychologically important level of $0.60. This is an important level for multiple XRP holders as the token has been able to break through several times since May 2024.
The $0.60 level is considered a hurdle on the path to further upside towards the $0.7429 target, which coincides with XRP’s July 2023 peak.
The Moving Average Convergence Divergence (MACD) indicator displays a series of red histogram bars followed by a green histogram bar. This trend has recently reversed, with altcoin prices seeing essentially positive momentum.
XRP/USDT daily chart
If Ripple closes below the $0.5000 level on Thursday, the bullish theory will be invalidated. This is the level that XRP has taken liquidity by storm several times. Therefore, this is an important support for altcoins.
Another important support level is the July 5 low of USD 0.3823. If the XRP correction continues, the altcoin could fall to this level before attempting a recovery.
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.
