The U.S. Securities and Exchange Commission (SEC) has intensified its legal battle against Ripple Labs, taking aim at the company’s plans to launch a stablecoin. In the latest court filing, the SEC categorized Ripple’s forthcoming stablecoin as an “unregistered crypto asset,” emphasizing its concerns that the fintech firm may continue engaging in unregulated practices unless a permanent injunction is imposed.
The development comes after Ripple unveiled its stablecoin initiative in April, though the company has remained tight-lipped about specific details surrounding the token since then. The SEC’s latest move underscores the regulatory watchdog’s determination to clamp down on Ripple’s operations, which are already under scrutiny due to an ongoing lawsuit over the status of XRP, Ripple’s native cryptocurrency.
XRP Price Remains in Downtrend Despite Bullish Signals, News Could Worsen Slide
The SEC’s renewed scrutiny arrives at a precarious time for XRP, as the cryptocurrency continues to grapple with bearish market conditions. Despite exhibiting bullish signals, such as a promising Weekly Relative Strength Index (RSI) analysis by crypto analyst EGRAG Crypto, XRP’s price has remained trapped in a downtrend, shedding 10% over the past two days alone.
EGRAG Crypto’s analysis suggests that XRP’s Weekly RSI could potentially reach higher highs in the current cycle, targeting the 90-95 range. Historically, XRP has demonstrated a pattern of two cycle tops, with the second top typically occurring around the 70 RSI mark, signaling potential fireworks once that threshold is breached.
Stiff Resistance Ahead for XRP
However, XRP faces formidable resistance ahead, as highlighted by altFINS’ technical analysis. The cryptocurrency is approaching a confluence of resistances, including a horizontal $0.55 resistance, a down trendline, and the 200-day moving average at approximately $0.59. To resume an uptrend, XRP must muster the strength to break through this resistance area decisively.
However, if this news affects the XRP market sentiment, we could see a further dip to the next support areas at $0.50, followed by $0.42.
Source: altFINS – Start using it today
Downtrend Across All Time Horizons
Adding to XRP’s woes, the cryptocurrency finds itself entrenched in a downtrend across all time horizons, spanning short, medium, and long-term timeframes. This pervasive bearish trend suggests that a significant shift in market dynamics would be required to reverse the current trajectory. A new lawsuit, however, could make things worse for the Ripple ecosystem.
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Show more +As the SEC’s crackdown on Ripple intensifies and XRP’s price struggles to gain traction, the cryptocurrency community watches with bated breath, anticipating the potential ramifications of this ongoing regulatory clash on the broader crypto ecosystem.
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