XRP struggles to make a comeback above sticky resistance at $0.50 on Monday as traders continue to assess the legal skirmishes between blockchain firm Ripple and the US Securities and Exchange Commission (SEC). Â
RippleÂ’s lawyers have asked the judge to consider a civil penalty of around $10 million by drawing parallels with the recent settlement amount for Terraform Labs, another crypto firm embroiled in a legal battle with the SEC. The SEC responded to RippleÂ’s counter and quoted a $102.6 million figure instead, far lower than the previously requested $2 billion for allegedly violating securities laws.
RippleÂ’s Chief Legal Officer Stuart Alderoty said on Saturday that, by looking at the SECÂ’s counter letter to the judge, the regulator “seems to have abandoned its absurd demand for $2 billion.” Â
The @SEC is raging. Ripple defended itself – “agreeing to nothing.” The court gave clarity that XRP is not a security. There are no “victims” to compensate. And worst of all for the @SEC, Ripple is thriving. But at least @SEC seems to have abandoned its absurd demand for $2B. https://t.co/KVSkB9OqlH
— Stuart Alderoty (@s_alderoty) June 15, 2024
Ripple wiped out nearly 2% of its value last week while attempting to recover from its decline on Monday. The altcoin hasnÂ’t been able to break past resistance at $0.50, failing to close above this level nearly all days during last week.Â
XRP trades at $0.4905, inching closer to testing the $0.50 resistance on the daily time frame. The XRP/USDT chart below shows red histogram bars below the neutral line on the Moving Average Convergence Divergence (MACD) indicator, supporting the recent decline in RippleÂ’s token.Â
The MACD implies there is underlying negative momentum in RippleÂ’s price trend. If it corrects further, XRP could find support at the April 19 low of $0.4665.Â
XRP/USDT 1-day chartÂ
If Ripple sees a daily candlestick close above $0.50, it could invalidate the bearish thesis. In this scenario, the next resistance is at the June 5 high of $0.5326.Â
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 BitcoinÂ’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.
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