Ripple Labs has been mandated by a Manhattan court to pay a substantial penalty of $125 million to the U.S. Securities and Exchange Commission (SEC).
This development comes as a conclusion to the long-standing legal battle where Ripple was accused of selling XRP tokens improperly, classifying them as unregistered securities. Despite this, XRP has witnessed an unexpected 18% increase in its market value.
The penalty imposed on Ripple Labs stems from allegations dating back to 2020 when the SEC sued Ripple and its CEO, Brad Garlinghouse, and co-founder Chris Larsen. They were accused of raising over $1.3 billion through what was claimed to be an unregistered securities offering.
While the initial fines sought by the SEC amounted to a staggering $2 billion, the court’s decision orders only a fraction of this sum, marking a significant legal conclusion for the cryptocurrency firm.
The SEC asked for $2B, and the Court reduced their demand by ~94% recognizing that they had overplayed their hand. We respect the Court’s decision and have clarity to continue growing our company.This is a victory for Ripple, the industry and the rule of law. The SEC’s…
— Brad Garlinghouse (@bgarlinghouse) August 7, 2024
Ripple CEO Brad Garlinghouse respected the court’s decision and noted its clarity for future endeavors. Meanwhile, a spokesperson from the SEC highlighted the universal application of securities laws, irrespective of the technology or terminology employed.
XRP Market Resilience and Performance
On the financial front, XRP’s market performance has shown remarkable resilience. As of the latest updates, XRP’s price has soared by approximately 23.63% in the last 24 hours, bringing its value to around $0.611575 per token.
This surge pushed XRP’s trading volume to over $5.67 billion, underscoring an uptick in market activity. XRP holds the seventh position on CoinMarketCap with a live market cap exceeding $34 billion, showcasing strong investor confidence despite the legal challenges.
The price of XRP began the day stable at just over $0.50 but experienced a dramatic increase around midnight, peaking at roughly $0.63.
Source: CoinMarketCap
This spike is suggestive of a sharp rise in buying activity, which can best be explained by traders who have reacted to some positive sentiment or/and short-term market sentiments. After this spike it underwent a few but soon began to maintain a range between $0.60 and $0.63.
Chart analysis of the XRP pattern shows very interesting features of its trading behavior. The current MACD signal direction is bearish for the potential change that exists with this particular moving average convergence-divergence. It may signal a shift towards bullish conditions for XRP if the MACD line goes above the signal line.
Source: TradingView
Moreover, the Relative Strength Index (RSI) stands at 58.52, suggesting that the asset is neither overbought nor oversold, thus maintaining a balanced market environment that could accommodate further price movements.
The post XRP Price Prediction August 8: Ripple XRP Soars 18% Post-SEC Victory, But Will Resistance Hold? appeared first on Coinfomania.
