- Ripple filed a letter requesting stay of monetary portion of the court’s judgment in the SEC vs. Ripple lawsuit and received SEC approval.
- The two parties consent on the request for temporary postponement of the $125 million fine.
- XRP slips to $0.54 as the altcoin faces a correction in the aftermath of the recent correction in crypto prices earlier this week.
Ripple (XRP) dipped to $0.54, erasing 1.81% of its value on the day. The payment remittance firm had submitted a letter requesting a stay on the monetary portion, the $125 million settlement in its recent lawsuit, on August 7. The Securities & Exchange Commission (SEC) consented to the request.
Daily digest market movers: Ripple and SEC agree to postpone the monetary fines imposed in lawsuit
- The final ruling in the SEC vs. Ripple lawsuit was considered a partial victory for both parties. The ruling judge, Analisa Torres, upheld the ruling that XRP is not a security in
- secondary market transactions on crypto exchange platforms.
- A fine of $125 million was imposed on Ripple for securities law violation and the firm requested a stay on this monetary portion of the ruling on August 7.
- The letter requesting this temporary postponement of the fine received the SEC’s consent as well, per September 4 filing in the court.
- XRP traders are waiting to see whether the regulator will appeal the final ruling in the lawsuit.
- If there is an appeal, it could negatively impact XRP’s legal clarity.
Technical analysis: XRP could extend losses by nearly 5%
XRP has been in a multi-month downward trend that started on July 13, when the altcoin was at $0.9380. XRP is likely to extend losses by 4.72% and sweep liquidity at $0.5188. This marks a key support level for the altcoin as it is the lower boundary of a Fair Value Gap (FVG).
The Moving Average Convergence Divergence (MACD) shows red histogram bars under the neutral line, which signifies that there is underlying negative momentum in the XRP price trend.
XRP/USDT daily chart
A daily candlestick close above $0.5785 could invalidate the bearish thesis. XRP could target the psychologically important $0.60 level.
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.
