- SEC vs. Ripple lawsuit ends with Judge Torres ruling that Ripple is likely to violate the law with their willingness to push boundaries.
- Judge slammed Ripple with $125 million in fines for institutional sales of XRP, a federal securities law violation by the payments firm.
- XRP broke through $0.60 resistance, erasing recent losses, while Bitcoin and Ethereum struggled under key support on Thursday.
Ripple (XRP) led gains among top 10 cryptocurrencies on Thursday after a historic court ruling in the Securities & Exchange Commission (SEC) lawsuit. Judge Analisa Torres considered the likelihood of the payment remittance firm violating federal securities law in the future and hit Ripple with a $125 million penalty.
Daily Digest Market Movers: Ripple lawsuit ends, but SEC could appeal ruling
- Ripple lawsuit ended with Judge Analisa Torres asking the firm to pay $125 million in penalties for the likelihood that it eventually crosses the line by violating federal securities law in the future.
- As traders digested the news of the SEC vs. Ripple ruling, pro-crypto attorney Fred Rispoli explained that Judge Torres recognized the absence of litigation in her final ruling.
- In her ruling, Judge Torres says that “The Court finds that Ripple’s willingness to push the boundaries of the order evinces a likelihood that it will eventually, if it has not already crossed the line. On this balance the Court finds that there is a reasonable probability of future violations, meriting the issuance of an injunction.”
- The ruling judge slammed Ripple with $125 million in fines, and predicted a “violation” is likely, if it hasn’t occurred already.
- Attorney Rispoli interprets this as Judge Torres telling the two parties, “You two better work out on your own whatever is happening now. I’ll be pissed if you come back to me.”
IMO this is a recognition that, absent legislation, any particular sales event is highly contextual as to whether it’s a violation. It’s almost as if Torres is saying, “You two better work out on your own whatever is happening now. I’ll be pissed if you come back to me.”
— Fred Rispoli (@freddyriz) August 8, 2024
- SEC could appeal Judge Torres’ ruling in the lawsuit.
- XRP has received legal clarity in the final ruling. However, an appeal could change that and influence investor confidence and demand for the altcoin negatively.
Technical analysis: XRP could rally to $0.75, November 2023 peak
Ripple rallied above key resistance at $0.60 and trades at $0.62 at the time of writing. The altcoin could extend gains by over 19% and hit its November 2023 peak of $0.75 in its attempt to break out of the multi-month downtrend.
The XRP/USDT daily chart shows that the altcoin has attempted to break out of the downward trend. A daily candlestick close above $0.61 could validate the bullish thesis. Relative Strength Index (RSI) reads 60.42, well above the neutral level.
XRP faces resistance at $0.66, the 50% Fibonacci retracement of the decline from the July 13 top of $0.93 to the July 5 low of $0.38.
XRP/USDT daily chart
Ripple could find support at the Fair Value Gap (FVG) between $0.51 and $0.57, as seen in the XRP/USDT daily chart.
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.
Source