- XRP price is testing psychologically important support at $0.60 on Wednesday.
- Ripple announced the launch of its XRPLedger grants program, inviting applications from developers.
- XRPLedger issues final reminder to all node operators to upgrade to 2.1.1 for AMM amendment that goes into effect on Thursday.
Ripple (XRP) price is testing a crucial support on Wednesday, at $0.60. The altcoin was hit by the market-wide correction as Bitcoin price coiled back under $70,000.
Ripple’s call for applications to the XRPLedger grant program and the XRPLedger upgrade to 2.1.1 are the two key catalysts likely influencing the XRP price on Wednesday.
Daily digest market movers: XRPLedger prepares for AMM amendment, invites applicants for grants
- XRPLedger, Ripple’s decentralized public blockchain, has a key Automated Market Maker (AMM) update lined up for Thursday. The blockchain network called all nodes to upgrade to version 2.1.1 for the update to go into effect.
- Ripple has called developers to apply to its XRPLedger grants program.
- XRPL Grants help enable developers to leverage the ledger’s open-source technology to innovate and build useful applications on Ripple’s blockchain.
- The program offers between $10,000 and $200,000 funding for projects up to one year.
- Ripple has introduced rolling applications to enhance flexibility for developers and bring projects with more utility to the XRPLedger.
- Previously, grants have been awarded to projects that drive the adoption of the XRPLedger and its native token XRP, like Evernode, which brings Layer 2 smart contracts to the Ledger, and XRPScan, the largest explorer for Ripple.
Technical analysis: XRP price tests crucial support
XRP price is testing critical support at $0.60. The $0.60 level has been considered psychologically important for Ripple, as it acted as support for several weeks in March. A decline below this level typically signals a correction in XRP price.
Ripple price is in an ascending channel and a breakout to the downside is likely, with price testing $0.60 support. The next key support level for XRP is $0.5851. The $0.5851 level has been tested several times and emerged as a steady support for XRP throughout April 2024.
XRP/USDT 4-hour chart
If the XRP price fails to close below the channel, it could begin its recovery and test resistance at the upper boundary at $0.63. The April 9 peak of $0.6431 would be the target for the XRP price.
SEC vs Ripple lawsuit FAQs
It depends on the transaction, according to a court ruling released on July 14: For institutional investors or over-the-counter sales, XRP is a security. For retail investors who bought the token via programmatic sales on exchanges, on-demand liquidity services and other platforms, XRP is not a security.
The United States Securities & Exchange Commission (SEC) accused Ripple and its executives of raising more than $1.3 billion through an unregistered asset offering of the XRP token. While the judge ruled that programmatic sales aren’t considered securities, sales of XRP tokens to institutional investors are indeed investment contracts. In this last case, Ripple did breach the US securities law and will need to keep litigating over the around $729 million it received under written contracts.
The ruling offers a partial win for both Ripple and the SEC, depending on what one looks at. Ripple gets a big win over the fact that programmatic sales aren’t considered securities, and this could bode well for the broader crypto sector as most of the assets eyed by the SEC’s crackdown are handled by decentralized entities that sold their tokens mostly to retail investors via exchange platforms, experts say. Still, the ruling doesn’t help much to answer the key question of what makes a digital asset a security, so it isn’t clear yet if this lawsuit will set precedent for other open cases that affect dozens of digital assets. Topics such as which is the right degree of decentralization to avoid the “security” label or where to draw the line between institutional and programmatic sales are likely to persist.
The SEC has stepped up its enforcement actions toward the blockchain and digital assets industry, filing charges against platforms such as Coinbase or Binance for allegedly violating the US Securities law. The SEC claims that the majority of crypto assets are securities and thus subject to strict regulation. While defendants can use parts of Ripple’s ruling in their favor, the SEC can also find reasons in it to keep its current strategy of regulation by enforcement.
The court decision is a partial summary judgment. The ruling can be appealed once a final judgment is issued or if the judge allows it before then. The case is in a pretrial phase, in which both Ripple and the SEC still have the chance to settle.
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