Home » XRP price continues to decline amidst scuffle between Ripple CLO, SEC Director about ongoing lawsuit

XRP price continues to decline amidst scuffle between Ripple CLO, SEC Director about ongoing lawsuit

XRP price continues to decline amidst scuffle between Ripple CLO, SEC Director about ongoing lawsuit


  • XRP price fell to a monthly low of $0.5623 on Thursday, extending losses for a fourth consecutive session. 
  • Ripple’s Chief Legal Officer Stuart Alderoty condemned the SEC Director’s statements on the lawsuit. 
  • SEC Director Gurbir Grewal lashed out at crypto firms for non-compliance in an event by the Practicing Law Institute. 

Ripple (XRP) price is in a downward trend this week, hitting monthly lows at $0.5623 on Thursday, amid a broader correction in major cryptocurrency assets and as the legal battle between Ripple and the US Securities and Exchange Commission (SEC) keeps both sides confronted about what should be the status of crypto assets in financial markets. 

Ripple’s Chief Legal Officer (CLO) Stuart Alderoty on Thursday called out SEC’s director Gurbir Grewal for his comments over crypto firms and their non-compliance. The director commented on the regulator’s lawsuits against cryptocurrency entities like Ripple at a two-day event by the Practicing Law Institute. 

Daily digest market movers: Ripple CLO calls out SEC Director for comments on crypto lawsuits

  • SEC Director Gurbir Grewal participated on Wednesday in a two-day event by the Practicing Law Institute, where the executive gave a fifteen minute talk on the crypto industry and his thoughts on regulation. During his speech, Grewal called out cryptocurrency firms for “significant non-compliance” and addressed the SEC’s critiques. 
  • SEC’s top enforcer said the crypto industry has made “creative attempts to avoid the regulator’s jurisdiction” and claimed that the US financial regulator makes up the rules as they go. 
  • Grewal’s comments were met with Stuart Alderoty’s response on X. The Ripple CLO called out Grewal for ignoring the SEC’s “gross abuse of power” and slammed the top enforcer for stating that the agency provides clear guidance. 
  • Ripple has been embroiled in a legal battle with the SEC since 2020. The next key deadline in the lawsuit is April 22, when the payment remittance firm is expected to file their opposing brief to the SEC’s remedies-related filing. 
  • On March 26, the SEC’s filing asked the judge of the case to impose a nearly $2 billion fine against Ripple.

Technical analysis: XRP price likely bottomed out

XRP price falls for a fourth consecutive day, dropping to a low of $0.5623 on Thursday. The altcoin’s Relative Strength Index (RSI) on the 4-hour chart has dropped to 28.62 early on Thursday before recovering to 30.91.

The RSI drop to the oversold region is typically considered a buy signal for sidelined traders. In other words, the current price could offer traders an opportunity to “buy the dip” before the altcoin begins its recovery. 

XRP price could make a comeback to the Fair Value Gap (FVG) between $0.6030 and $0.6103, on the 4-hour chart. Once this inefficiency is filled, the altcoin could see another correction or a liquidity sweep below $0.5678, a level that held as support throughout March. 

XRP/USDT 4-hour chart 

In the downside scenario, XRP price could see a daily candlestick close below the $0.5623 low and continue to decline toward $0.5386, a level that was respected as support throughout March. 

Cryptocurrency metrics FAQs

The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.

Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.

Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.

Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.

 






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