XRP price drops below psychologically important level amidst developments in SEC v. Ripple lawsuit

XRP price dropped below $0.55 on Thursday as both Ripple and SEC work on remedy-related briefs.
March 13 is the next key deadline for the SEC v. Ripple lawsuit.
The court will determine penalties for Ripple’s institutional sales of XRP by the April 29 deadline.

The Securities and Exchange Commission (SEC) has been criticized for its lawsuit against Ripple and a crypto exchange LEJILEX along with the Crypto Freedom Alliance of Texas (CFAT) filed a lawsuit against the regulator, seeking a declaration that “secondary-market sales of digital assets like the ones that LEJILEX intends to facilitate through its exchange are not sales of securities.”

XRP price dropped below $0.55 on Thursday.

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Daily Digest Market Movers: SEC v. Ripple lawsuit moves beyond remedies-related discovery

SEC v. Ripple lawsuit has moved past the discovery stage on the February 20 deadline. The two parties are working on their remedies-related briefs.
The three key deadlines in the legal battle between the two firms are:
- March 13: When SEC files remedies-related brief
- April 12: Deadline for motions opposing remedies proposals
- April 29: Final remedies deadline
On April 29, the court will determine the penalty for Ripple’s institutional sales and the case will likely draw to a close, unless there is a trial.
The LEJILEX crypto exchange and the Crypto Freedom Alliance of Texas (CFAT) sued the SEC on Wednesday, seeking a declaration that “secondary-market sales of digital assets like the ones that LEJILEX intends to facilitate through the http://Legit.Exchange are not sales of securities.
The exchange is seeking the declaration under the Declaratory Judgment Act, asking the court to order that secondary market sales of digital assets are not sales of securities, declaring that the does not need to register with the SEC as an exchange, broker, or clearing.
The lawsuit marks the first time a crypto exchange has sued a regulator before the launch of a project, asking the court to adjudicate questions related to digital asset securities.
The regulator has sixty days to respond to the lawsuit.

Technical Analysis: XRP price suffers a correction, further decline likely

XRP price is currently in an uptrend. The altcoin slipped below the psychologically important $0.55 level on Thursday and a sweep of the 23.6% Fibonacci retracement level is likely at $0.5219.

XRP price could resume its rally towards the 78.6% Fibonacci retracement of its drop from the 2024 peak, at $0.6073, once its bounces off support at $0.5219. The Moving Average Convergence/ Divergence (MACD) indicator shows green bars that imply there is positive momentum. The Awesome Oscillator (AO) reveals that the asset’s price trend could reverse, the red bars signal a likely shift in the direction of XRP price.

XRP/USDT 1-day chart

A daily candlestick close below the 23.6% Fibonacci retracement, at $0.5219 could signal that XRP price is likely to correct further. A sweep of $0.50 is likely and XRP price could recoup its losses, once it closes above this level.

Ripple FAQs

Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.

XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.

XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.

XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.