XRP remains stable above the $0.50 mark despite setbacks in the legal battle between the SEC and Ripple. On Tuesday, XRP’s price trended downward but stayed above the psychologically significant $0.50 threshold. Judge Sarah Netburn, overseeing the lawsuit, granted the SEC’s request to compel Ripple to produce its financial statements for 2022-2023 and post-complaint institutional sales proceeds.
Despite this legal setback, XRP’s price hovered around $0.5054 on Tuesday, struggling to maintain levels above $0.5000. The recent ruling impacted Ripple, potentially leading to further corrections in XRP’s price.
In the past, the SEC’s lawsuit against Ripple has influenced XRP’s price, leading to its delisting from major exchanges and affecting the payment remittance firm. However, despite the unfavorable ruling, XRP has managed to hold steady above $0.50, which has historically acted as a crucial support level for the cryptocurrency.
The judge’s decision to compel Ripple to disclose its financial statements and institutional sales contracts post-lawsuit is significant, as it could affect the penalties imposed on Ripple.
From a technical standpoint, XRP’s price has been on a downward trajectory since October 2023, forming lower highs and lower lows. While it has stayed above $0.50, there is a possibility of further decline, with a potential target at the January 31 low of $0.4853.
However, there is also a chance of a bounce-back from $0.4853, with a potential climb towards $0.5429, which represents the 23.6% Fibonacci retracement level. The green bars on the Awesome Oscillator signal a potential price recovery for XRP in the near term.
XRP/USDT 1-day chart
XRP price could find support at $0.4853 and in the event of further decline, price could nosedive to the August 2023 low of $0.4210.
CRYPTO ETF FAQS
What is an ETF?
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Is Bitcoin futures ETF approved?
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Is Bitcoin spot ETF approved?
Bitcoin spot ETF has been approved outside the US, but the SEC is yet to approve one in the country. After BlackRock filed for a Bitcoin spot ETF on June 15, the interest surrounding crypto ETFs has been renewed. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – got a victory in court, forcing the US regulator to review its proposal again. The SEC’s loss in this lawsuit has fueled hopes that a Bitcoin spot ETF might be approved by the end of the year.
