According to CryptoPotato, XRP, after briefly crossing the $0.50 mark, saw a slight decline over the past 12 hours. Despite this, the short-term uptrend managed to recoup its weekly losses, making XRP the only cryptocurrency to show a slight increase during the same period.
In line with the price action, XRP has seen a rise in open interest (OI) contracts as traders continue to closely monitor the ongoing legal battle between Ripple and the US Securities and Exchange Commission (SEC). This increase in OI indicates that investors are opening their positions in anticipation of a rise in the price of XRP, according to the latest analysis by CryptoQuant. The on-chain analysis platform also noted increased trading activity around XRP, currently the seventh-largest cryptocurrency by market capitalization. This trend may be an indicator of bullish investor sentiment, but it may also lead to potential market volatility.
The dispute between Ripple and the SEC began in December 2020 when the SEC accused the blockchain company and some of its executives of conducting an unregistered securities offering through XRP sales. In 2021, U.S. District Judge Analisa Torres ruled that automated sales on open cryptocurrency markets by the San Francisco-based company did not constitute offerings of securities, contradicting the SEC's claims. However, the judge agreed with the SEC that Ripple's direct sales of XRP to institutional investors were actually offers of securities.
The latest legal dispute revolves around the size of the potential penalty for Ripple. Initially, the SEC sought a $2 billion fine, while Ripple's lawyers suggested the civil penalty should not exceed $10 million, compared to the recent settlement for Terraform Labs. The regulatory watchdog then responded to Ripple's proposal with $102.6 million, much less than the fine originally requested.
