- XRP ranges close to $0.50 on Monday, amidst uncertainty of an update in the SEC vs. Ripple lawsuit.
- Ripple filing supporting its motion to seal relevant documents awaits a response from the SEC.
- Ripple CEO Brad Garlinghouse commented on meme coins at Consensus.
Ripple (XRP) is embroiled in a legal battle with the US Securities and Exchange Commission for nearly four years. The SEC vs. Ripple lawsuit drags on as holders await the SEC’s response to the payment firm’s filing from May 29.
XRP is ranging around $0.50, a key price level for the altcoin, amidst CEO Brad Garlinghouse’s recent statement on meme coins in Consensus 2024.
Daily Digest Market Movers: Ripple CEO comments on meme coins, holders await lawsuit update
- Ripple CEO Brad Garlinghouse shared his thoughts on meme coins at Consensus 2024, a leading crypto event.
- Garlinghouse said,
I get a ton of shit when I say these things but I’m going to say it anyway, I don’t think Dogecoin has been a good thing for the industry.
Ripple CEO Brad Garlinghouse
I get a ton of shit when i say these things but I’m going to say it anyway, I don’t think Dogecoin has been a good thing for the industry.It’s about solving real Problems . pic.twitter.com/XMeEWaJz8O
— XRP (@BankXRP) May 31, 2024
- The Ripple executive questioned the meme coin’s utility and slammed it for lack of a real use case.
- Garlinghouse established that he is not “anti-Dogecoin” but took aim at the largest meme coin during his talk.
- SEC vs. Ripple lawsuit continues with the payment firm’s filing of a motion to seal relevant documents. These documents are connected with the regulator’s motion for judgment and remedies.
- The deadline for filing Omnibus letter motions for all involved parties was May 20.
- Ripple’s recent filing is a letter supporting its Omnibus motion.
- The payment remittance firm explains that the SEC should not be able to force disclosure of the payment remittance firm’s highly sensitive financial information in its May 29 filing.
- Holders await the SEC’s reply to the filing, as on June 10.
Technical analysis: XRP hovers around $0.50 in a bearish formation
Ripple is hovering around the key level of $0.50 on Monday. At the time of writing, XRP price is $0.4988 on Binance. Ripple has formed a descending triangle, a formation with bearish tendencies, between March 25 and June 10, as seen in the XRP/USDT 1-day chart.
The bearish chart pattern is characterized by a descending upper trendline and a second, flatter horizontal trendline. XRP price touched the upper trendline on several occasions between May 25 and June 6 and the lower trendline at $0.4917 has acted as support between March 25 and June 10.
The bearish signs extend to the momentum indicators on the 1-day chart. The red histogram bars below the neutral line on the Moving Average Convergence Divergence (MACD) indicator support the bearish thesis.
Relative Strength Index (RSI) is 39.53, dipping towards the oversold level at 30.
The downside target for XRP is a nearly 10% decline to the June 7 low of $0.4508. XRP could find support at the 23.6% Fibonacci retracement level at $0.4717. The Fibonacci level marks the drawdown from Ripple’s April 9 peak of $0.6431 to the April 13 low of $0.4188.
XRP/USDT 1-day chart
A daily candlestick close above the upper trendline of the descending triangle formation could invalidate the bearish thesis for Ripple. XRP could target the 50% Fibonacci retracement at $0.5310 as its resistance.
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.
