XRP recovers above $0.48 as SEC lawsuit against Binance likely in jeopardy, Judge relies on Ripple ruling
- Ripple ruling that states XRP is not a security in secondary market sales was cited by Judge in SEC vs. Binance lawsuit.
- The ruling acted as a precedent, and the Judge clarified whether secondary market sales of crypto were securities.
- XRP climbs above $0.48 resistance on Monday, extending gains by nearly 1%.
Ripple (XRP) ruling acted as a precedent when Judge Amy Berman Jackson ruled in the US Securities and Exchange Commission (SEC) vs. Binance lawsuit. The Judge for the US District Court for the District of Columbia dismissed part of the charges against Binance concerning the secondary market sales of Binance’s native BNB token.
The Judge relied on Judge Torres ruling in the SEC vs. Ripple lawsuit, where secondary market sales of the token did not satisfy the Howey test, and XRP was free of security status.
Daily digest market movers: Ripple ruling cited in SEC vs. Binance lawsuit
- Judge Analisa Torres’ ruling from July 2023 was used in the SEC vs. Binance lawsuit to determine whether a cryptocurrency is a security in secondary-market sales.
- Judge Jackson dismissed charges against Binance concerning secondary-market sales of its native token, BNB.
- The Ripple ruling laid the basis for dismissing the charges, and the Judge’s decision in the SEC vs. Binance lawsuit provided clarity on the “security” status of cryptocurrencies sold on exchange platforms.
- There has been no update in the SEC vs. Ripple lawsuit since the agency asked for $102.6 million in fines from the payment remittance firm on May 29.
- XRP holders await updates on the lawsuit and are closely following the launch of the stablecoin Real USD (RLUSD).
Technical analysis: XRP makes comeback above $0.48
XRP climbed above the key resistance of $0.48 on Monday. The altcoin extended gains by nearly 1% on the day. Ripple could fill the Fair Value Gap (FVG) between $0.4825 and $0.4841 and then rally to the next key resistance at $0.4955.
This level coincides with the 23.6% Fibonacci retracement of the decline from the March 11 peak of $0.7440 to the April 13 low of $0.4188. Further up, XRP faces resistance at the psychologically important $0.50 level.
The Moving Average Convergence Divergence (MACD) momentum indicator shows underlying positive momentum in the XRP price trend.
XRP/USDT daily chart
On the other hand, the altcoin could find support at $0.4508, the June 7 low for XRP. Further down, the April 13 low at $0.4188 is the key support for Ripple.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.