XRP Price Plunges As Ripple v. SEC Lawsuit Sails Past Discovery Stage, Are Dips Profitable?
Cryptocurrencies encountered increased volatility on Wednesday, with Bitcoin leading the rout with a drop to $50,500. XRP price, not spared by the forces in the market, rolled back to trade at $0.5375 on Thursday.
The cross-border money remittance token posted a 2.2% decline in seven days, underscoring the changing technical landscape in February.
Ripple v. SEC Lawsuit Past Discovery Stage
The Securities and Exchange Commission (SEC) is facing criticism and a new lawsuit filed by the Crypto Freedom Alliance of Texas (CFAT). In an interview with Bloomberg TV earlier this week, Ripple’s CEO Brad Garlinghouse criticized the agency for consistently losing lawsuits.
Although the court ruled in July last year that secondary sales of XRP did not constitute securities, Ripple is still battling in court ahead of the determination of the case on institutional token sales.
With the case past the discovery stage following the deadline on February 20, both Ripple and the SEC are preparing remedies-related briefs, with set deadlines on March 13, April 12, and April 29.
The court is expected to rule on Ripple’s penalty for its institutional XRP sales on April 29, thus concluding as long as there is no trial.
CFAT is going after the SEC regarding crypto exchange LEJILEX’s intended “secondary-market sales of digital assets” similar to Ripple’s. Such a declaration would mean that LEJILEX will not be required to apply to be regulated by the SEC.
The SEC has 60 days to respond to the first-of-its-kind lawsuit where an exchange is suing the agency ahead of a project launch, seeking regulatory clarity.
XRP Price In Search Of Liquidity
XRP has from Friday seen its value decrease by 6.65% to $0.5375. Based on its position below the 200-day Exponential Moving Average (EMA), this correction may continue to the next range support between $0.52 and $0.53.
The Moving Average Convergence Divergence (MACD) indicator backs the bearish technical structure as it slides further below the neutral line.
The neutral Relative Strength Index (RSI), dropping toward the oversold region, paints a grim short-term picture.
Should XRP price be accepted above the dotted trend line, bulls will find it easy to restart the uptrend toward $1. However, this remains to be seen with a drop to support range $0.52 – $0.53, likely to provide more liquidity for a stronger rebound.
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John Isige
CoinGape
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