Ripple’s XRP Plunges as SEC Brief Stokes Legal Woes

In the preceding 24 hours, the cryptocurrency landscape has endured a notable slump, contracting by over 1.5% to establish a market valuation of $2.3 trillion. This dip has particularly taken its toll on Ripple’s XRP token, which hovers precariously near the $0.52 threshold. As of press time, XRP is trading at $0.5217, marking a 2.99% reduction from its previous day’s valuation.

XRP/USD 1-Day Chart (Source: CoinMarketCap)

The downturn extends beyond XRP’s price to affect its overall market performance. In relation to Bitcoin, XRP has diminished by 1.65% over this same stretch of time. Further insights into XRP’s market behavior reveal a significant contraction in trading activities.

XRP’s intraday market cap has fallen by 2.56%, landing at $28,866,077,273. More dramatically, its 24-hour trading volume has plummeted by 36.70%, reaching just $1,165,822,641. These figures suggest a withdrawal of investor engagement, with many likely securing profits amid the market’s downward trajectory.

SEC Remedies Brief Sparks XRP Decline

A recent brief from the Securities and Exchange Commission (SEC) appears to be the root cause of Ripple’s XRP woes. According to reports, the SEC dismissed Ripple’s assertion of responsible conduct, declaring that there shouldn’t be “widespread uncertainty” regarding the legal classification of XRP. The court had previously overruled Ripple’s “fair notice” defense, casting a long shadow over XRP’s recent price slide.

Despite claiming cooperation with the SEC since its 2013 ICO, Ripple now faces potential future violations. The SEC clarified that a defendant’s intent or stopping illegal activities doesn’t affect the availability of injunctive relief. It criticized Ripple’s adjustments to prevent future infractions as insufficient and noted that their assurances attempt to relitigate past arguments rather than ensure compliance.

Following the remedies brief, Ripple’s Chief Legal Officer, Stuart Alderoty, criticized the SEC, stating that it consistently fails to apply the law faithfully. He added that Ripple is closer to resolving the lawsuit, while analysts predict the final judgment may not arrive until September.

More of the same from the SEC — failing to faithfully apply the law and trying to pull the wool over the Judge’s eyes. The good news is that we are closer than ever to putting this lawsuit behind us, though unfortunately, many are just starting the journey. We trust the Court… https://t.co/JGhxAtOuk1

— Stuart Alderoty (@s_alderoty) May 7, 2024

Alderoty also suggested that international financial regulators with comprehensive crypto licensing frameworks should take note of the SEC’s perceived disregard for their efforts. He compared the agency’s views to treating these frameworks as “mere fishing licenses.”

XRP Price Action

The 4-hour chart shows the MACD indicator trending downward and approaching the zero line, suggesting a bearish outlook for XRP with further potential price decreases. Positioned 0.007 below the signal line, this reinforces the strengthening bearish trend dominating the XRP market.

XRP/USD 4-Hour Chart (Source: Tradingview)

Additionally, the MACD’s histogram features widening red bars below the zero line, reflecting strong seller momentum and signaling a high probability of continued downward movement. Similarly, the RSI indicator is moving downward, below the neutral zone, highlighting robust bearish sentiment.

With a current reading of 42.44, the RSI remains below the signal line, indicating more room for further decline before the market potentially enters oversold territory.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

Source