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XRP falls 6.13% amid SEC lawsuit uncertainty, potential penalties loom

EditorHari G
Published 11/15/2023, 04:07 AM
Updated 11/15/2023, 04:07 AM

NEW YORK - Digital currency XRP faced a downturn on Tuesday, dropping by 6.13% to $0.6295, following a slight gain the previous day. The ongoing legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs is casting a shadow over the asset's future, with market participants closely monitoring developments that hint at a protracted dispute potentially lasting until late 2025 due to possible appeals.

The SEC v Ripple case took a decisive turn on Monday when Judge Torres issued a scheduling order that heightened investor worry. As part of the remedies-related discovery phase, the SEC must propose an appropriate fine for Ripple by February 12, 2024. This action stems from allegations involving $770 million in institutional sales of XRP.

Legal analyst John E. Deaton has offered insights suggesting that Ripple's penalty might be less than their $150 million legal expenses, citing the non-fraudulent nature of the case and the exclusion of On-Demand Liquidity (ODL) sales from the proceedings. Despite some optimism among observers, there is an acknowledgment that the case could extend into the summer of 2024.

From a technical perspective, XRP's price has remained above both the 50-day and 200-day Exponential Moving Averages (EMAs), which are typically considered bullish indicators. A push above the immediate resistance level of $0.6354 could set XRP on a path toward $0.7047. Conversely, a fall below $0.60 might lead to a decline beneath the trend line and down to the support level at $0.5835. The 14-day Relative Strength Index (RSI) stands at 54.30, suggesting there may be room for a rise to the $0.6354 resistance before potentially entering overbought territory.

Investors are now eyeing these technical thresholds alongside the legal developments, as both will likely play significant roles in shaping XRP's value trajectory in the coming months.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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