Ripple holders mull lawsuit outcome after SEC enforcement lead steps down

• The US SEC’s head of enforcement for crypto assets steps down after nine years at the agency. 
• The resignation of David Hirsch occurs in the final stage of the lawsuit between Ripple and the SEC.
• XRP fails to hold above $0.50 on Tuesday after closing above this level on Monday. 

XRP trades in the red on Tuesday as Ripple (XRP) holders are awaiting developments in the US Securities and Exchange Commission’s (SEC) lawsuit against the firm with the case drawing to a close. The overall direction of the legal battle could be about to change as David Hirsh, the US regulator’s enforcement lead for the crypto unit, stepped down from his position last week. This has raised concerns in the community regarding the future course of the SEC vs. Ripple lawsuit.

In its latest letter on June 15, The SEC addressed Ripple’s request for $10 million in fines, rejecting the possibility of such a penalty but opening the door to a $102 million settlement, well below the $2 billion initially demanded. 

XRP price falls on Tuesday, trading at around $0.49, after closing above $0.50 on Monday for the first time in ten days. 

Daily digest market movers: Ripple holders await lawsuit outcome with changes at SEC 

• SEC’s head of the crypto asset unit in the enforcement division, David Hirsch announced his resignation after nine years at the agency, in a LinkedIn post. 
• The departure of the head of enforcement raises concerns among XRP holders awaiting a lawsuit outcome since Hirsch led the agency’s legal actions against Coinbase and Solana. 
• Hirsch’s departure from the regulator’s office at a critical time is noted by XRP holders and traders. 
• The enforcement lead’s departure may have an impact on the ruling or the path forward between the two parties is anticipated by market participants following the lawsuit’s updates closely.
• In a letter on June 15, the SEC commented on Ripple’s request for a $10 million penalty and said that even by the firm’s logic (presented in its previous filings and after comparisons drawn between Ripple and Terraform Labs’ lawsuits) it owes at least $102.6 million in penalties. 
• XRP holders are awaiting a court ruling on the issue of the penalty and the alleged securities violation by Ripple. The date of the ruling isn’t set.

Technical analysis: XRP closes above $0.50 for the first time in ten days

News of the departure of SEC’s top crypto enforcer seemed to bring some relief to XRP holders on Monday, although any optimism proved to be short-lived. On the daily chart, the altcoin pushed above $0.50 and closed above this level for the first time in ten days. However, prices are back below this key level on Tuesday as XRP loses around 3% on the day. 

Looking up, after being in a state of decline for over two months, XRP could target the $0.5330 resistance that coincides with its June 5 high. 

The Moving Average Convergence Divergence indicator is flashing shorter red histogram bars, and the MACD line crossed above the signal line on Tuesday, supporting a thesis of recovery in XRP. The shorter histogram bars show that the underlying negative momentum is fading. 

XRP/USDT 1-day chart 

However, if Ripple closes below the June 14 high of $0.4813, it could invalidate the bullish thesis. Looking down, XRP could find support at the April 19 low of $0.4665, a key level that has acted as support for more than two months on several occasions.