Ripple Labs has opposed the SEC’s proposal to impose a fine of nearly 2 billion dollars on the company. Similarly, Ripple has argued that the Court should limit the civil penalty to a maximum of 10 million dollars. Let’s see all the details below. 

Ripple challenges the SEC: $10 million fine deemed sufficient

As anticipated, yesterday Ripple Labs filed an opposition to the proposal of the United States Securities and Exchange Commission (SEC).

Which asked a New York judge to impose a fine of almost 2 billion dollars on the company that manages the XRP Ledger blockchain.

In the document, Ripple Labs argues that 

“The Court should reject the SEC’s requests for an injunction, restitution, and pre-judgment interest, and should limit the civil penalty to no more than 10 million dollars.”

The SEC had proposed to the court to impose on Ripple Labs to pay 876 million dollars in restitution, 198 million dollars in pre-judgment interest, and 876 million dollars in civil penalties, for a total of 1.95 billion dollars.

This following a ruling that declared Ripple had violated federal securities laws through institutional sales of XRP. 

However, she had not confirmed other accusations, such as the violation of the same laws through sales of XRP on exchanges and through algorithms.

Ripple’s lawyers wrote the following:

“The SEC’s demands are another example of administrative excess in this case. The agency is behaving as if it has completely won, demonstrating reckless conduct, when it is not the case. Furthermore, the SEC is seeking disgorgement, despite the precedent established by the Supreme Court and the Circuit, and a penalty that is over 20 times higher than that obtained by any other defendant in a digital asset case.”

Furthermore, in a paragraph detailing Ripple’s revenue from institutional sales, taxes paid, and losses, the company claimed to have no profits to return.

XRP bounces back from $0.43: what to expect from Ripple?

Recently, XRP has dropped to around 0.43 dollars during a correction phase. This level has acted as support, leading to a significant recovery, although the price has dropped by about 43% compared to its most recent peak. 

The resilience shown by the crypto, however, indicates that there may be room for further growth.

Recovery above the 50-month EMA and the golden section around $0.52 suggest that the uptrend may continue, provided that these levels are maintained until the end of the month. 

However, the MACD histogram is showing bearish signals, indicating that there could be downward pressure in the short term.

In the weekly chart, the MACD shows conflicting signals: the lines have crossed bearishly and the histogram has been declining for several weeks. 

On the other hand, the Relative Strength Index (RSI) is still in neutral territory, indicating that the market may be waiting for further movement.

Ripple is encountering significant resistance around 0.545 and 0.62 dollars. A break above these resistances could indicate the end of the corrective phase and a return to the bullish trend, with potential resistance targets at 0.75 dollars.

To summarize, the recent bounce of XRP is an encouraging sign, but it is essential to follow the price trend in the short term to determine if Ripple will be able to maintain its momentum and resume its bullish trajectory.