Crypto analysis

Dramatic movement on Ripple vs SEC legal battle, will it effect on XRP price ?

July 27, 2024

XRP (Ripple) vs SEC legal battle :

SEC Didn't Demand $102.6 Million Penalty from Ripple

Attorney Jeremy Hogan has clarified that the SEC did not explicitly request a $102.6 million penalty from Ripple. Instead, this amount was presented as a legal argument by the SEC in their filings. This has led to some confusion, but it's crucial to understand that the SEC has not officially demanded this specific penalty from Ripple.

The $102.6 million figure was introduced by the SEC as a counterargument to Ripple's proposed $10 million settlement. The SEC calculated this amount using a ratio derived from a previous case involving Terraform Labs. This doesn't mean the SEC is firmly asking for $102.6 million; rather, they are using this figure as part of their legal strategy in the ongoing negotiations.

While this clarification doesn't change the core of the SEC's case against Ripple, it does provide important context to the discussions around potential settlements. The final outcome of this legal battle remains uncertain, and it's essential to note that the $102.6 million figure is more of a negotiating point than a concrete demand from the SEC.

XRP technical analysis:

Ripple (XRP) has been rising since July 8 and could go up by another 18%, reaching a target of $0.70. On the way up, it might face resistance around the 78.6% Fibonacci retracement level, which measures the drop from the March 11 high of $0.7440 to the July 5 low of $0.3823.

Moving Average Convergence Divergence (MACD) a key indicator shows positive signs for Ripple. The green bars on the MACD histogram suggest that Ripple's upward momentum is strong.

Ripple could find support at $0.5632, which is the 50% Fibonacci retracement level. Additionally, there's a Fair Value Gap (FVG) with boundaries between $0.5703 and $0.5404 that could also provide support.

In summary, Ripple has strong upward momentum but faces some resistance. Key support levels to watch are $0.5632 and the FVG between $0.5703 and $0.5404.