XRP Price Reversal Within Triangle Pattern Hints Potential SEC Appeal Despite $12.5M Penalty

The XRP price dipped 2.62% to $0.56 on Sunday as crypto witnessed renewed selling pressure. The falling price marks a notable reversal within the multi-year triangle pattern, signaling the potential for a major correction.

The XRP price faced renewed selling pressure on Sunday, dipping 2.62% to reach $0.56 as crypto witnessed a bearish divergence from the mid-week recovery. However, the XRP coin remained in the spotlight after a favorable final verdict in the Ripple vs SEC case.

On August 7th, Judge Torres imposed a $12.5 million penalty on Ripple, which was significantly lower than the SEC's original demand of $2 billion for XRP sales. While the XRP Community celebrated this as a major win, there were discussions about the possibility of an appeal by the U.S. Securities and Exchange Commission (SEC), especially regarding Ripple's On-Demand Liquidity (ODL) sales.

However, Attorney Jeremy Hogan provided insight into the matter, explaining that the injunction on Ripple's ODL sales is unlikely to alter the current state of affairs. He highlighted that most XRP and ODL sales are conducted outside U.S. jurisdiction, rendering them unaffected by the ruling. Ripple can still sell XRP to institutions under specific exemptions, and the SEC must demonstrate any violation to enforce the order.

I see lots of questions re what the injunction means for ODL sales. I don’t see it changing the status quo AT ALL, for the following reasons:

1. As Ripple has stated, the majority of its XRP and ODL sales are outside the U.S. jurisdiction and not subject to the ruling. Those… pic.twitter.com/3GimWEcp0c

— Jeremy Hogan (@attorneyjeremy1) August 7, 2024

Hogan further mentioned that Ripple's legal team has had sufficient time to adjust its practices to comply with the summary judgment ruling.

Meanwhile, the XRP price displayed a notable reversal of $0.64 from the mid-week recovery, as bearish pressure mounted. The asset dropped 11.5% to reach $0.56, while the market cap stood at $31.9 Billion.

This reversal marked another bear cycle within the triangle pattern, which had been intact since September 2021. The chart pattern consists of two converging trendlines: dynamic resistance and support, which drive the prices into a squeezing range before a major breakout.

According to data from Coinglass, XRP's Open Interest (OI)-Weighted Funding Rate is -0.0085. This negative rate indicates that short sellers are paying to maintain their positions, suggesting expectations of further price declines.

The above is the detailed content of XRP Price Reversal Within Triangle Pattern Hints Potential SEC Appeal Despite $12.5M Penalty. For more information, please follow other related articles on the PHP Chinese website!