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XRP Tumbles Before SEC’s Response Due on May 6

On Sunday, XRP saw a modest decline as investors anticipate a crucial upcoming reply brief from the U.S. Securities and Exchange Commission (SEC) in its ongoing legal battle with Ripple. The SEC is scheduled to submit a remedy-related reply brief on Monday, May 6th, detailing their arguments for penalizing Ripple.

XRP

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This upcoming brief is part of an ongoing exchange of legal filings that started with the SEC’s initial brief in March. The SEC is seeking a punitive penalty and an injunction against Ripple, claiming the company breached U.S. securities laws with actions following their December 2020 complaint.

In response, Ripple has filed an opposition brief challenging the SEC’s demands and requested the court to reject the SEC’s claims due to procedural errors and delays in the filing process.

Upcoming SEC Brief May Impact Ripple’s XRP Market Position

Ripple contends that its sales of XRP to accredited investors via On-Demand Liquidity (ODL) agreements post-complaint do not violate regulations. As the cryptocurrency community, particularly Ripple supporters, awaits the SEC’s reply brief on May 6th, there’s heightened interest in the potential legal ramifications. This brief is expected to clarify the SEC’s stance on seeking a punitive penalty and an injunction against Ripple.

Should the SEC present compelling evidence that XRP contravened the law following the December 2020 complaint, it could trigger a sell-off in XRP. An injunction blocking sales to institutional investors could severely disrupt Ripple’s U.S. operations and negatively affect market sentiment.

  • Current Trading Value: XRP is trading at $0.52661, down 2.78% from Saturday’s high.
  • Potential Market Impact: The SEC’s decision could induce significant selling pressure on XRP.

Daily Technical Outlook: Ripple XRP

Ripple XRP is currently trading at $0.52752. The asset is positioned just below its pivot point at $0.5377, which is critical for determining its short-term market direction. If XRP can ascend beyond this pivot, there could be potential for bullish momentum, otherwise, it remains in a bearish stance.

XRP/USD

Technical Levels to Watch:

  • Pivot Point: $0.5377
  • Resistance Levels: Immediate resistance lies at $0.5713, followed by further hurdles at $0.5957 and $0.6280. Surpassing these could indicate a stronger upward trend.
  • Support Levels: Immediate support stands at $0.5092. If the price falls below this level, the next supports at $0.4877 and $0.4586 will be key to preventing further declines.

The Relative Strength Index (RSI) is at 54, suggesting a neutral market sentiment, while the 50-day Exponential Moving Average (EMA) at $0.5207 supports the proximity to the pivot point. A decisive move either above or below $0.5377 could lead to significant price action in the coming sessions.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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