XRP Price Under Pressure As SEC Demands $2 Billion From Ripple Labs
SEC demands Ripple Labs to pay $2 billion fine. XRP price is under pressure, facing more downside.
Key Takeaways
- Ripple Labs faces potential $2 billion SEC fine.
- XRP price shows volatility amidst legal challenges.
- Ripple criticizes SEC’s overreach and legal authority.
XRP creator Ripple Labs faces a potential $2 billion fine from the United States Securities and Exchange Commission (SEC). Stuart Alderoty, Ripple’s Chief Legal Officer, criticized the SEC’s approach, claiming it relies on misleading and inaccurately defined statements. He also anticipates that the court will handle the matter reasonably.
The price of XRP has fallen by 3.5% since yesterday, March 25, and was previously in an uptrend. The local resistance rejected it at $0.65, with evident signs of seller’s pressure.
Can SEC Fine Ripple Labs?
Ripple CEO Brad Garlinghouse accused the SEC of exceeding its legal authority. He also highlighted past judicial criticisms of the SEC’s overreach.
Furthermore, Garlinghouse pointed out the unprecedented nature of a $2 billion fine in a case lacking fraud or recklessness allegations. Ripple co-founder Chris Larsen criticized the SEC’s perceived self-exemption from legal accountability, warning of its negative implications for the US compared to other G20 nations, especially in an election year.
XRP Price Analysis
XRP’s last major upward trend started on February 6 last year, rallying from a support level of $0.50. It surged past the descending resistance, reaching close to $1 by mid-July 2023, hinting at the possible onset of a bullish phase.
The movement featured a five-wave pattern and culminated in a peak of $0.75 on March 11. This was followed by a decline to the 0.618 Fibonacci retracement level, a common reversal point for corrective phases, suggesting this could be part of a broader bullish correction.
Should this analysis hold true, XRP should stabilize before rallying with increased momentum. If this happens, a major third wave could unfold, propelling XRP towards the $1 mark again, aligning with its 1.618 Fibonacci extension target.
However, its recovery the March 20 low of $0.56 looks more corrective than impulsive, meaning it could likely end on a lower high with another downtrend to go. In this case, the price of XRP should fall to a lower low than on March 20 and potentially find support at $0.54, where the 0.786 Fibonacci retracement level is.
Disclaimers
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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