The SEC vs. Ripple lawsuit has a new updated, which could have improved the odds of the US Securities and Exchange Commission’s appeal. A September 6 filing shows that the SEC has agreed to Ripple’s stay request, which has caused investors to speculate on two questions: Will the US Securities and Exchange Commission (SEC) appeal? Will XRP price crash or continue its ascent?
Ripple’s September 4 Stay filing
XRP Price Slips Below Key Support as SEC’s Appeal Odds Increase
On the daily chart, XRP price has slipped below the yearly Volume Weighted Average Price (VWAP) of $0.5614. This development could increase the chances of a steep correction as the SEC’s appeal odds spike.
Has SEC’s Appeal Odds Increased After Accepting Ripple’s Stay?
The September 4 filing from Ripple’s legal team showed that the US SEC had agreed to the Stay request on the $125 million fine. In turn, the prosecutor proposed Ripple place $139 million, roughly 111% of the initial judgment amount of $125 million. This amount should be placed in the bank account until a month after the time to appeal expires, or there’s an appeal.
What is a Stay request?
A stay is a legal maneuver that temporarily halts or suspends a court’s judgment or ruling. In this case, Ripple has requested a stay of the monetary portion of the August 7 judgment, which requires them to pay a $125 million fine.
Why did Ripple request a stay & why did the SEC agree?
Ripple’s request could be as simple as to preserve assets. Another reason for this request could be that it would give Ripple time to strengthen its case and leverage over the SEC. On the other hand, the SEC must have agreed to Ripple’s request as it would allow them to preserve capital and improve their argument before filing an appeal.
Pro-XRP Lawyer Increases SEC Appeal Odds
Regarding the SEC vs. Ripple lawsuit, pro-XRP lawyer Fred Rispoli stated on X that “odds have increased.” He adds that while the stay request will put 111% of the monetary judgment into a trust, it does not “guarantee” an appeal.
Rispoli stated that this agreement to Ripple’s Stay request is “SEC being evasive to Ripple lawyers.” The lawyer, however, mentions that while this move from the prosecutor does not confirm with certainty that the SEC will appeal, it has increased the odds. To be precise, Risipoli says there is a 60% chance that the SEC will appeal.
IMO 60/40 in favor of appeal.
— Fred Rispoli (@freddyriz) September 4, 2024
XRP Price Fumbles Amid SEC Appeal Odds
The daily chart shows that the XRP price flipped the yearly VWAP support at $0.5614 into a resistance level. This level coincided with the daily support level of $0.5560, making this recent breakdown pivotal.
If this bearish momentum continues, investors can expect a 10% correction to the next key support level of $0.5033, the lower limit of the yearly VWAP. If buyers fail to defend this level, investors can expect Ripple price to reach the $0.4696 foothold, which has supported the remittance token over the past 500 days. This move would constitute a 15% crash.
XRP/USDT 1-day chart
A quick flip of the yearly VWAP’s $0.5614 level into a support floor would alleviate the bearish momentum for XRP price. Such a development could see Ripple bulls catalyze a 10% move to VWAP’s upper limit of $0.6196.
Frequently Asked Questions (FAQs)
The XRP price has slipped below the yearly Volume Weighted Average Price (VWAP) of $0.5614, increasing the chances of a steep correction. However, a quick flip of the yearly VWAP’s $0.5614 level into a support floor could alleviate the bearish momentum and catalyze a 10% move to VWAP’s upper limit of $0.6196
The US Securities and Exchange Commission (SEC) has agreed to Ripple’s stay request, temporarily halting the monetary portion of the August 7 judgment.
The agreement has increased the odds of an SEC appeal, with pro-XRP lawyer Fred Rispoli estimating a 60% chance of an appeal. This development has also led to a potential XRP price crash, with a possible 15% correction to $0.4696.
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Akash Girimath
Akash Girimath is an engineer at core, but is interested in the chaos of the financial markets. Akash is senior report and analyst who also trades cryptos on a regular basis and maintains a small crypto fund for friends and family.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
