The XRP price movement is likely being influenced by several factors, including the recent Automated Market Maker (AMM) amendment and developments in the Securities and Exchange Commission (SEC) lawsuit against Ripple, along with related court cases such as the Govil and Coinbase lawsuits.
Ripple’s Chief Legal Officer, Stuart Alderoty, highlighted a significant lawsuit in which the Second Circuit rejected the SEC’s appeal. The SEC had accused Aron Govil of using his position as a controlling shareholder to engage in fraudulent conduct through Cemtrex.
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While seeking disgorgement of misappropriated funds, the Second Circuit denied the SEC’s appeal, which Alderoty views as a loss for the SEC. This decision is significant for the Ripple case, as the SEC is seeking over $2 billion in fines from the payment remittance firm for alleged violations of securities laws related to institutional sales of XRP.
Alderoty’s comments suggest that the Govil decision may impact the outcome of the SEC’s appeal in the Ripple lawsuit. However, Ripple attorney Bill Morgan cautioned against concluding Ripple’s brief and counterarguments against the SEC’s motion are made public.
In terms of price action, Ripple is currently trading within a tight range between the April 4 low of $0.5623 and the April 9 high of $0.6431.
The $0.60 level is a key psychological support for XRP, having acted as a support level throughout March and April 2024. A successful retest of $0.60 could see XRP price aiming for the April 9 high of $0.6431. However, resistance lies at $0.6336, a level that XRP has struggled to break over the past two weeks.
A daily close below $0.6027, the 50% retracement of XRP’s climb to April 9, could invalidate the bullish outlook. Support levels are seen at $0.5851 and $0.5386, which have held throughout mid-March and April 2024.