XRP Price Rises As Ripple Prepares to Face SEC Punishment

XRP, the native cryptocurrency of the Ripple payment platform, surged sharply in value, up $0.54 on Monday. The increase comes as Ripple prepares to respond to a Securities and Exchange Commission (SEC) opening brief related to the move, which seeks a $2 billion penalty against the company.

 XRP holders are eagerly awaiting Ripple’s response, as the outcome of this legal battle is expected to have a significant impact on the price of the cryptocurrency.

Ripple’s come back to the SEC’s penalty demand

Ripple has filed a protest letter regarding its action, which addresses the SEC’s request for a penalty of $2 billion. The redacted opposition brief is now available, as stated in a statement released by Stuart Alderoty, Chief Legal Officer at Ripple,

Our opposition to the SEC’s request for $2B in penalties for legacy institutional sales is now public. In a case that had no allegations (or findings) of recklessness or fraud, and in which Ripple won on significant issues, the SEC’s ask is just more evidence of its ongoing… https://t.co/GLcdsyInZW

— Stuart Alderoty (@s_alderoty) April 23, 2024

“Our opposition to the SEC’s request for $2B in penalties for legacy institutional sales is now public. In a case that had no allegations (or findings) of recklessness or fraud, and in which Ripple won on significant issues, the SEC’s ask is just more evidence of its ongoing intimidation against all of crypto in the US. We remain confident that the Judge will approach this final remedies phase fairly.”

Additionallye pro-Ripple lawyer Bill Morgan said that Mr Ripple must pay a fine, as the court found that the company violated securities laws.

Technical Analysis

The rise in XRP’s price has led to obvious bullish enthusiasm, rising more than 15% in the last day. Technical indicators such as the Fisher Transform Indicator and the Average Directional Index (ADX) point to a bullish trend reversal, with XRP likely to test the $0.60 resistance level. However, closing the daily candle below the $0.50 level could invalidate the bullish thesis. XRP may find support at the April 13 low of $0.4188 or weekly support at $0.4117.

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