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- SEC vs. Ripple lawsuit ended in a $125 million fine for securities law violation by the payment remittance firm, however both parties consider it a win.
- Ripple noted a massive spike in XRP price after the ruling, but the rally fades as traders digest the likelihood of SEC appeal.
- XRP slips under key psychological support at $0.60, erasing 7% of its value on Friday.
The US Securities & Exchange Commission (SEC) vs. Ripple lawsuit ended after a long-drawn legal battle with the court asking the firm to pay $125 million in fines. Judge Analisa Torres noted that the firm is likely to violate federal securities laws if it hasn’t already, raising concerns about an SEC appeal.
XRP suffered a correction on Friday, down to $0.5778 at the time of writing.
Daily Digest Market Movers: XRP could lose legal clarity if SEC appeals ruling
- XRP retains its status as a non-security, with Judge Analisa Torres making no change to the July 2023 ruling in the final lawsuit outcome.
- Eleanor Terret, a journalist at Fox Business, however, believes that the SEC has reason to appeal the ruling on XRP’s status as a security.
- While Judge Torres’ ruling cements XRP’s status as a non-security in secondary market sales, if the SEC appeals, this could affect the sentiment of traders.
NEW: I reached out to the @SECGov for comment on the @Ripple ruling and a spokeswoman gave me this statement:
“The Court granted the SEC’s motion for remedies including an injunction barring Ripple from committing additional violations of the securities laws and significant… https://t.co/TC2xk7pBD2
— Eleanor Terrett (@EleanorTerrett) August 8, 2024
- With XRP’s legal clarity analysts expected news of an Exchange Traded Fund (ETF) application soon.
- The SEC is unlikely to appeal the fine imposed on the firm since it is nearly twelve times the amount that Ripple offered to pay.
- XRP erased recent gains from the lawsuit ruling and dipped under the key psychological support level at $0.60.
Technical analysis: XRP erases gains and extends losses by 7%
XRP is in a multi-month downtrend per the daily chart. The altcoin erased gains from the lawsuit victory and suffered a correction on Friday. XRP lost 7% value on the day and dropped under key support at $0.60.
XRP Ledger’s native token could extend its losses further by another 10% and collect liquidity in the Fair Value Gap (FVG) between $0.5188 and $0.5785. Ripple could find support at the upper and lower boundary of the FVG.
XRP/USDT daily chart
A daily candlestick close above $0.60 could invalidate the bearish thesis, and XRP could rally towards the $0.6602 target, the 50% Fibonacci retracement of the decline from July 13, 2023, to July 5, 2024.