Ripple is set to provide a response to the Securities and Exchange Commission’s (SEC) motion seeking a court order to prevent XRP sales to institutional investors. This ongoing legal battle has had an impact on the price of XRP, which currently sits below the 50-day Exponential Moving Average (EMA) but above the 200-day EMA.
The current price of XRP is around $0.60, with investors eagerly awaiting a strong bullish surge that could potentially push it to $1. However, there is cautiousness among XRP investors as they await Ripple’s response to the SEC’s recent filing, which is expected later this month.
In March, the SEC filed a redacted version of the opening brief related to the remedy, and has also argued for additional penalties against Ripple for violating securities laws. The SEC is seeking a court order that would prohibit Ripple from selling XRP to institutional clients, according to a report from Crypto News Flash.
Ripple is required to submit its opposition brief by April 22, with a redacted version to be released on April 24. The response must specifically address the issue of post-complaint conduct.
The court’s decision on whether to prohibit Ripple from selling XRP to institutional investors in the US could have a significant impact on Ripple’s plans to expand its business in the country. Ripple’s ability to pay potential penalties will also be a crucial factor.
Ripple may have an opportunity to address the allegations of securities law violations post-complaint, based on US case law. In the Morrison vs. NAB case, the US Supreme Court ruled that the SEC’s jurisdiction is limited to sales made within the US. If Ripple can prove that all post-complaint sales occurred outside the US, the court may impose less severe penalties.
The penalty amount could potentially be lower than the $729 million mentioned in the initial brief, and limited to proceeds from XRP sales to US institutional investors before the complaint. Ripple must also demonstrate that its post-complaint XRP sales complied with US securities laws in order to avoid being prohibited from selling to US institutional investors.
In terms of price action, XRP is currently below the 50-day EMA, indicating a bearish trend in the short term. However, it remains above the 200-day EMA, suggesting a bullish outlook over the longer term. If XRP breaks above the 50-day EMA, it could test the resistance level at $0.6609. Investors are advised to closely monitor updates on the SEC’s actions and any developments related to crypto regulation, as these could impact the performance of XRP.
On the other hand, if XRP drops below the 200-day EMA and the support level of $0.5740, it could lead to a test of the trend line. The Relative Strength Index (RSI) reading of 45.78 suggests a possible decline in XRP’s price before reaching oversold territory.
Furthermore, Ripple has been making significant developments, such as the launch of a USD-pegged stablecoin, as reported by Crypto News Flash.