Bitcoin Leads Market Rout as XRP Price Drops
Cryptocurrencies experienced a surge in volatility on Wednesday, with Bitcoin taking the lead by dropping to $50,500. XRP price also faced a decline and traded at $0.5375 on Thursday, reflecting the changing technical landscape in February. Within a span of seven days, XRP witnessed a 2.2% decrease.
Ripple vs. SEC Lawsuit Progresses Beyond Discovery Stage
The Securities and Exchange Commission (SEC) is facing criticism and a new lawsuit filed by the Crypto Freedom Alliance of Texas (CFAT). Ripple’s CEO Brad Garlinghouse criticized the agency for its consistent losses in lawsuits during an interview with Bloomberg TV. Although the court ruled last year that secondary sales of XRP were not securities, Ripple is still engaged in a legal battle regarding institutional token sales.
- Ripple and the SEC are preparing remedies-related briefs after passing the discovery stage.
- Deadlines for these briefs are set on March 13, April 12, and April 29.
- The court is expected to rule on Ripple’s penalty for institutional XRP sales on April 29.
CFAT has filed a lawsuit against the SEC concerning crypto exchange LEJILEX’s intended “secondary-market sales of digital assets,” similar to Ripple’s case. This move would exempt LEJILEX from regulatory requirements imposed by the SEC. The SEC has 60 days to respond to this lawsuit, which is the first of its kind where an exchange sues the agency before launching a project.
XRP Price Faces Liquidity Search
XRP’s value has seen a 6.65% decrease to $0.5375 since Friday. The cryptocurrency is currently positioned below the 200-day Exponential Moving Average (EMA), suggesting that the correction may continue towards the support range of $0.52 to $0.53. The bearish technical structure is supported by the Moving Average Convergence Divergence (MACD) indicator, which is sliding further below the neutral line. The Relative Strength Index (RSI) is also dropping towards the oversold region, indicating a grim short-term outlook.
If XRP price manages to break above the dotted trend line, it could signal a restart of the uptrend towards $1. However, a drop to the support range of $0.52 to $0.53 is likely to provide more liquidity for a stronger rebound.
Hot Take: XRP Faces Challenges Amidst Market Volatility
The recent market volatility has impacted XRP price, causing a decline and increasing uncertainty in its future performance. The ongoing Ripple vs. SEC lawsuit adds another layer of complexity to XRP’s situation, with potential penalties and regulatory implications at stake. Traders and investors should closely monitor developments in the lawsuit and market trends to make informed decisions about XRP investments.
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