News & Analyses

XRP steadies above $0.50 as SEC responds to Ripple motion to strike new expert materials

  • Ripple and the SEC continue their legal battle, now focused on the validity of certain materials and testimonies.  
  • The SEC highlights the legal question of whether Ripple’s institutional clients suffered damages, as some received a higher discount than others.
  • XRP closed above $0.51 on Monday and continued climbing higher early on Tuesday. 

Ripple (XRP) trades broadly sideways on Tuesday after closing above $0.51 on Monday as the payment firm’s legal battle against the US Securities and Exchange Commission (SEC) persists, now in the form of crossed motions to determine which materials and testimonies have to be included in the case. 

The SEC filed on Monday its response to Ripple’s motion to strike new expert materials, which requested the court to dismiss testimony from SEC accountant Andrea Fox. The US regulator had shared new materials in its previous filings. Ripple labeled these materials as the testimony of the expert. The two parties are now arguing over the status of the SEC accountant Andrea Fox’s statements. Whether Fox’s statements will be considered as a summary or an expert testimony, the decision lies with the court. 

The lawsuit’s focus has shifted from XRP sales made to institutional investors to the nature of one Andrea Fox’s comments. XRP holders have their eyes peeled for the next update, in May 2024, when the court rules on the lawsuit.

Daily digest market movers: SEC responds to Ripple motion in April 29 filing

  • The SEC had requested Ripple’s financial statements and details about XRP institutional sales from both before and after the lawsuit. Upon receiving Ripple’s financial statements, the regulator brought in Assistant Chief Accountant at the SEC, Andrea Fox, to share a summary of the findings from the statements. 
  • Ripple’s lawyers considered Fox’s findings as “undisclosed expert testimony.” However, the SEC argues that it is a simple summary prepared from financial statements through the application of basic arithmetic.
  • Ripple filed a motion to strike this testimony on April 23. The regulator stated that the claim is incorrect in Monday’s response. Attorney James Filan shares the filing in a tweet on X.
  • The SEC filed its response to Ripple’s motion on Monday, April 29. In its filing, the regulator requested the court to deny Ripple’s motion and noted that the summary shared by the expert Andrea Fox’s statement is consistent with another SEC accountant summary witness declaration that has already been allowed by Judge Analisa Torres. 
  • The SEC stands by Fox’s declaration, says it is “proper summary evidence,” and states that the cross-border payment remittance firm has unsuccessfully raised the same argument before in the course of the lawsuit.
  • Ripple did not question the correctness of Fox’s claim, while the SEC argues that Fox did not give an opinion on “pecuniary harm” or damages caused to institutional clients of Ripple’s ODL, supporting its stand on “summary.”
  • The regulator states whether there was any pecuniary harm is a legal question. Attorney Filan shared the SEC’s filing in his tweet on X.
  • Ripple had countered the SEC’s demand for over $2 billion in fines and damages in its recent filing. The firm said the fine should not exceed $10 million. Judge Sarah Netburn is expected to rule on the SEC and Ripple’s requests in May 2024.

Technical analysis: XRP sustains above $0.51

Ripple sustained above $0.51 as the SEC filed its response to the firm’s motion. The $0.53 level is the closest resistance for Ripple. While Ripple has broadly consolidated in the last few days, overcoming this level would be key to start an uptrend as it has acted as support throughout mid-February, March and early April. 

The Relative Strength Index (RSI), a momentum indicator used to measure whether an asset is overbought or oversold, currently reads 41.43, up from the 39.65 observed on Sunday. The RSI, which is slowly climbing towards the neutral level at 50, is in agreement with price and no divergence is observed.

The Moving Average Convergence/Divergence (MACD) indicator shows green histogram bars above the neutral line and a recent crossover of the indicator above the signal line was noted on April 22, a bullish sign for XRP. 

If XRP continues climbing higher, key resistances are at $0.53, $0.55 and $0.64, which align with the 50%, 61.8% and 100% Fibonacci retracement levels of the decline between April 9 top of $0.64 to April 13 low of $0.42. 


XRP/USDT 1-day chart 

A daily candlestick close below $0.50, a support level where XRP has hovered for the past four days, could invalidate the bullish thesis. In a correction, XRP could find support at the April 19 low of $0.46 and the April 13 low of $0.42. 

Bitcoin, altcoins, stablecoins FAQs

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.


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