XRP holders anticipate free pass for Ripple after SEC decision to drop Ethereum probe
- Ripple holders react to news of the US SEC dropping its investigation into Ethereum, expecting a similar treatment for the altcoin.
- Ripple’s Chief Legal Officer Stuart Alderoty poses questions as holders digest the SEC’s decision.
- XRP price ticks up on Thursday amidst speculation of the SEC’s next steps in the lawsuit against Ripple.
Ripple (XRP) holders debate the future of the altcoin on Thursday, which could be closely related to the US Securities and Exchange Commission’s (SEC) next step following its decision to end the investigation into Ethereum (ETH).
XRP edges up slightly on Thursday as the pro-Ripple community hopes for a similar treatment by the US regulator.
Daily digest market movers: Ripple holders hope for SEC U-turn
- US SEC dropped their investigation into Ethereum, Consensys founder Joseph Lubin said on Wednesday.
- The SEC’s decision was slammed by the XRP holder community and pro-Ripple attorney Bill Morgan, who said that Ethereum and Ripple’s different treatment will show how arbitrary the SEC has been in crypto.
- XRP community members on X are debating whether the SEC will treat Ripple in the same way as Ethereum. Trader behind the X handle @XRPcryptowolf asks the community why the SEC withdrew its lawsuit against Ethereum Consensys but not the XRP case.
Why did the SEC withdraw the lawsuit against Ethereum Consensys but not the $XRP case?
— XRPcryptowolf (@XRPcryptowolf) June 19, 2024
- Ripple’s Chief Legal Officer Stuart Alderoty raised questions on the SEC’s treatment of Ethereum. Alderoty acknowledged the SEC’s decision as a win for Ethereum developer Consensys and noted that several questions remain unanswered: “Does this mean the SEC thinks Consensys’ offers and sales of ETH are not securities transactions and/or that ETH itself is not a security? What will [SEC Chair Gary] Gensler say if now asked? What is the status of MetaMask and staking?”
A big win for Consensys, though questions remain. Does this mean the SEC thinks Consensys’ offers and sales of ETH are not securities transactions and/or that ETH itself is not a security? What will Gensler say if now asked? What is the status of MetaMask and staking?
— Stuart Alderoty (@s_alderoty) June 19, 2024
This is…
- Crypto analyst and influencer behind the handle @CryptoWendyO asked why Ripple is in legal trouble with the SEC but not Ethereum.
Why is Ripple in trouble but not Ethereum?
— Wendy O (@CryptoWendyO) June 19, 2024
Technical analysis: XRP gains nearly 1%, defying concerns surrounding SEC’s free pass to Ether
XRP gained nearly 1% on Thursday, as seen on the daily chart. The altcoin is trading at $0.4963 on Binance at the time of writing, gaining nearly 1% in the past seven days but losing nearly 8% in the past 30 days.
The Moving Average Convergence Divergence (MACD) line crossed over the signal line, with green histogram bars flashing above the neutral line, supporting a bullish thesis for XRP. If this upside scenario unfolds, Ripple could rally towards resistance at $0.5326, coinciding with the June 5 high.
XRP/USDT 1-day chart
On the contrary, if Ripple closes under $0.4665, the April 19 low, it could invalidate the bullish thesis. XRP could find the next support at the June 7 low of $0.4508.
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.
Recommended Articles
