- XRP price is in a downward trend but keeps trading above the $0.50 psychological level on Tuesday.
- Judge Sarah Netburn, who presides the SEC vs. Ripple lawsuit, granted the SEC’s motion to compel in its entirety.
- Ripple is ordered to produce its 2022-2023 financial statements and post-complaint institutional sales proceeds.
XRP price hovers around $0.5054 on Tuesday as the altcoin struggles to stay above the psychologically important level of $0.5000. XRP price is at risk of further correction as Ripple pocketed a loss in the latest ruling affecting the payment-remittance firm against the US Securities and Exchange Commission (SEC)..
The presiding judge Sarah Netburn granted the SEC’s motion to compel Ripple to produce its financial statements from 2022-2023 and post-complaint institutional sales proceeds.
Daily digest market movers: XRP price holds steady despite legal setback
- The US financial regulator’s lawsuit against Ripple has influenced the asset’s price in the past three years. The caseresulted in de-listing from major exchanges and affected the payment remittance firm that was once the largest public holder of the XRP token.
- While the most recent development in the SEC vs. Ripple lawsuit may not be entirely favorable to the cross-border payment giant, XRP price has held steady above the $0.50 level.
- This level is considered psychologically important since it has acted as support for XRP for over three months.
- The judge presiding on the SEC v. Ripple case granted the regulator’s motion to compel in its entirety, meaning that the firm is ordered to produce its financial statements from 2022-23 and its post-complaint (meaning post the SEC lawsuit) institutional sales contracts.
- This holds significance as the findings from these documents could impact the fine imposed on Ripple for their conduct post-complaint.
Technical Analysis: XRP price downtrend intact
XRP price is currently in a downward trend that started in October 2023, forming lower highs and lower lows with the recent updates in the SEC vs. Ripple lawsuit. The altcoin’s price has sustained above the $0.50 level, but it could continue its descent and a sweep of January 31 low of $0.4853 is likely.
XRP price could bounce from $0.4853 to climb towards $0.5429, which is the 23.6% Fibonacci retracement level of the decline from July to August. The green bars on the Awesome Oscillator (AO) on the daily timeframe signal that a price recovery is likely in XRP..
XRP/USDT 1-day chart
XRP price could find support at $0.4853 and in the event of further decline, price could nosedive to the August 2023 low of $0.4210.
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.