XRP Price Surges Towards $0.65 Amid the SEC’s $2 Billion Penalty Demand from Ripple
The Securities and Exchange Commission (SEC) has submitted a Motion for Remedies and Entry of Final Judgment in its legal battle against Ripple, seeking $2 billion in penalties. The filing discloses that Ripple sold XRP to over 80 institutions, with nearly all of its revenue in 2023 originating from the sale of the altcoin. Despite this legal development, XRP’s price continued its upward trajectory, surpassing $0.64 early on Tuesday.
In its latest legal maneuver against Ripple, the SEC has revealed its intention to pursue $2 billion in fines, shedding light on the extensive institutional sales of XRP conducted by the company. Ripple’s Chief Legal Officer, Stuart Alderoty, responded via Twitter, expressing confidence in the court’s impartiality during the remedies phase. Ripple CEO Brad Garlinghouse also criticized the SEC’s actions, accusing the regulator of abusing the authority entrusted to it by Congress.
Attorney James Filan shared a redacted version of the motion filed by the SEC, providing insights into the ongoing legal proceedings. Ripple’s financial statements indicate a heavy reliance on XRP sales for revenue generation in 2023.
Technical analysts suggest that XRP’s price has been consolidating within a tight range for over 250 days, establishing a strong support level at $0.586. With buyers maintaining control and Bitcoin’s price stability, analysts anticipate a potential breakout in XRP’s price, potentially triggering a 50% rally.
OPEN INTEREST, FUNDING RATE FAQS
How does Open Interest affect cryptocurrency prices?
Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.
How does Funding rate affect cryptocurrency prices?
Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.
