In the ongoing Ripple vs. SEC lawsuit, the U.S. Securities and Exchange Commission (SEC) recently submitted its redacted remedies reply brief, bringing a renewed wave of anticipation among crypto enthusiasts. This legal saga has unfolded since 2020, centering around whether Ripple’s XRP token is an unregistered security. The latest brief, which emphasizes the necessity of injunctive relief, has stirred intense discussions in the crypto market, particularly after Pro-XRP lawyer James K. Filan shared the update on the social media platform X.
In the past 24 hours, XRP has seen a 2.81% price decrease to $0.520. As the seventh largest crypto, its market cap stands at $28.7 billion, while its 24-hour trading volume stands at $ 1.1 billion, a 37% decrease in the last 24 hours.
XRP Price Chart: CoinMarketCap
SEC’s Arguments for Injunctive Relief
The SEC’s primary assertion revolves around the recurrence of Ripple’s alleged securities violations and the continued necessity of injunctive measures to prevent future infractions. Specifically, the SEC highlights Ripple’s history of unregistered sales of XRP dating back to 2013 and alleges Ripple plans to issue a new unregistered crypto asset. Given this pattern, the SEC argues that Ripple’s past actions continue to pose significant risks to investors and the integrity of the market.
🚨 BREAKING: RIPPLE VS. SEC
The 🇺🇸 SEC argues that Ripple’s claims do not negate the need for injunctions to prevent future violations. pic.twitter.com/iIBx3ZAPF5
— Ajay Kashyap (@EverythingAjay) May 8, 2024
In its brief, the SEC also dismisses Ripple’s defenses, citing similar arguments that have been rejected in previous cases, including those involving Coinbase. The agency maintains that Ripple’s purported changes are insufficient to prevent future violations. Additionally, the SEC contests Ripple’s objections to disgorgement, emphasizing the financial harm caused to institutional investors due to undisclosed terms. This, according to the SEC, highlights the importance of regulatory clarity to safeguard investors in the cryptocurrency landscape.
Ripple’s Legal Counterpoints
Ripple has not remained silent, vigorously disputing the SEC’s claims and questioning the necessity of the proposed injunctions. Ripple’s legal team emphasizes the company’s efforts to comply with regulations and reduce future risks. They argue that the SEC’s attempts to secure injunctive measures are unnecessary and excessively punitive.
XRP Technical Analysis
The technical outlook for XRP remains mixed, with a persistent bearish trend observed on monthly charts. Since April 2021, XRP has exhibited a pattern of lower highs, reinforcing bearish momentum. On the daily chart, XRP has formed a double-top pattern around the $0.57 mark, signaling bearish momentum as bulls have struggled to breach this resistance level. This has resulted in a recent price decline, suggesting that the token is likely to test the bottom of the double-top pattern at approximately $0.4780, potentially moving lower to $0.4450.
XRPUSD Daily Price Chart: TradingView
The Relative Strength Index (RSI) on the daily chart currently reads at 44, indicating neutral momentum but with bearish undertones as the price gravitates towards the lower support zones. Meanwhile, on the 4-hour chart, XRP clearly faces strong resistance around $0.57. If this level is breached, it could pave the way for further gains towards $0.64. Conversely, failure to sustain current levels may lead to a further retracement to the support zones around $0.4780 and $0.4450.
The Ripple vs. SEC legal battle is proving to be a defining moment for regulatory clarity in the cryptocurrency industry. The SEC is firm in its stance, emphasizing the need for injunctive relief to prevent future violations and safeguard the market. Ripple, however, maintains that it has taken sufficient measures to ensure compliance.
