■Ripple prepares for permanent ban on XRP sales,top meme coins list continues selling to international clients through foreign subsidiaries.
■If XRP sales are considered securities under crypto bill FIT21, the firm could sell XRP in regimes with different regulations.
■XRP rallies past sticky resistance, trades at $0.5282 at the time of writing.
Ripple (XRP) holders are debating the impact of the Financial Innovation and Technology for the 21st Century Act, or FIT21 on the Securities and Exchange Commission (SEC) vs. Ripple lawsuit. The outcome of the lawsuit could act as a market mover for XRP Ledger’s native token XRP’s price and affect the payment remittance firm’s institutional sales of XRP token.
According to attorney Bill Morgan, behind the X handle @Belisarius2020, Ripple has prepared for the worst outcome in the lawsuit, a permanent injunction or a complete ban on sales of XRP tokens to its institutional clients in the US.
Daily Digest Market Movers: Ripple prepares for worst outcome in SEC lawsuit
The US House approved the FIT21 bill, a major crypto legislation cleared by one of the chambers of the Congress on Wednesday.
As the bill makes passage to the Senate, XRP holders debate its impact on the longstanding legal battle between the US SEC and payment firm Ripple.
In its lawsuit against Ripple, the financial regulator has asked for $2 billion in penalties and alleges unregistered securities sale (sale of XRP token) to institutional clients.
In its defense, according to attorney Bill Morgan, Ripple is prepared for the worst case scenario in the lawsuit.
In the worst case, the court could order a permanent injunction (a complete ban) on XRP token sales to Ripple’s institutional clients in the US. While typically this move could affect the payment firm’s business, Attorney Morgan explains that Ripple continue offering its services and sell XRP to institutional clients overseas, under entities in different licensing regimes.
The arrangements Ripple already have in place which contemplate a worst case scenario of a permanent injunction being granted (no sales of XRP to US ODL customers and sales to overseas customers through subsidiaries under other licensing regimes) would work if its sales were… https://t.co/hOdmkv8d0y
— bill morgan (@Belisarius2020) May 23, 2024
The FIT21 bill may not negatively impact Ripple’s sales overseas and in regimes where crypto is regulated differently, where the firm has acquired the necessary licenses, and complies with the local regulations.
Technical analysis: XRP breaks past sticky resistance, trades at $0.52
Ripple price crashed nearly 18% between its April 9 top of $0.6431 and May 23 (when the price is $0.5282). The altcoin is consolidating since the decline from the April 9 top and broke past sticky resistance at $0.51 several times this week.
On Thursday, Ripple is exchanging hands at $0.5282, testing resistance at $0.5310, the 50% retracement of the decline from April 9 top of $0.6431 to the April 13 low of $0.4188.
The Moving Average Convergence Divergence, a momentum indicator, signals positive momentum underlying Ripple’s uptrend. The green histogram bars above the neutral line and MACD crossover above the signal line are signs that support a recovery thesis for Ripple.
The Relative Strength Index (RSI) reads 51.46, crossing above the neutral line, aiding the bullish narrative for the asset.
If Ripple successfully establishes itself above $0.5310, the next target is the April 22 and May 6 high of $0.5703. A run to this level would constitute 8% gains from the current level of $0.5282.
XRP/USDT 1-day chart
Though the outlook for XRP is bullish, a candlestick close above $0.5310 is needed to confirm the gains. If XRP fails to close above this level on the 1-day timeframe, it could sweep liquidity at the May 20 low of $0.5064.
The $0.50 level has emerged as key support for XRP price in the past week. Below $0.50, XRP could find support at the May 13 low of $0.4866, another crucial support level formed in the past two weeks.
