- Ripple prepares to file the opposition brief against the SEC on Monday.
- Ripple will respond to the SEC’s demand for $2 billion in fines requested in its remedies-related opening brief.
- XRP climbed back above $0.50 after nearly a week of struggling to break past the level.
XRP price climbed to a high of $0.54 on Monday, hours before Ripple files its response to the Securities and Exchange Commission (SEC) remedies-related opening brief. The response is long awaited by XRP holders, as the payment firm is expected to address the regulator’s request for $2 billion in penalties against it.
- Ripple is set to file its remedy-related opposition brief on Monday as a response to the SEC’s opening brief, which asked for $2 billion in fines. The content of Ripple’s brief won’t be officially available until Wednesday, although some parts of it could be made public before as it happened when the SEC submitted its brief.
- XRP holders anticipate Ripple’s response as developments surrounding the lawsuit are a key driver influencing the altcoin’s price. The opposition brief is considered to be one of the last chances for Ripple to present its arguments against the possibility of penalties.
- Ripple CEO Brad Garlinghouse recently showed optimism about the payment firm’s expansion plans, stablecoin and XRP utility, in a recent interview with Fox Business. Find out more about it here.
- Pro Ripple attorney Bill Morgan said that Ripple will have to pay “some fines” and there may be no settlement as the court found that the payment firm broke the law. The SEC accuses Ripple of engaging in an unregistered securities offering by selling XRP to institutional investors, namely hedge funds. https://twitter.com/Belisarius2020/status/1782230566689255890
- Options Open Interest in XRP is up over 15% in the past day, Coinglass data shows. An increase in Open Interest alongside an increase in price is generally indicative of long positions being built up by traders.
XRP tackled the sticky resistance at $0.50, after a week of broadly consolidating around it. The altcoin has started its recovery, gaining 25% from the April 13 low of $0.4188. The next key resistance is the psychologically important level at $0.60 and the April 9 top of $0.6431.
XRP bullish trend reversal is confirmed by the Fisher Transform Indicator. This technical indicator highlights when prices move to an extreme and helps traders spot turning points in an asset’s price.
The transform crossed above the signal line, suggesting a potential bullish trend reversal and indicating a good time for sidelined buyers to buy XRP.
The Average Directional Index (ADX), typically used to determine the strength and direction of the trend, reads 25.76. An ADX above 25 implies the trend is strong. Both indicators support XRP price recovery and the thesis of a bullish trend reversal.
XRP/USDT 1-day chart
However, a daily candlestick close below the $0.50 level could invalidate the bullish thesis. XRP could find support at the April 13 low of $0.4188 or the weekly support at $0.4117, a key support level on the weekly price chart. This support has held strong since March 2023.
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.