• Ripple to soon respond to SEC’s motion that seeks court order to prohibit XRP sales to institutional investors.
• Ripple’s legal standoff with the SEC continues to influence XRP’s price action, with the cryptocurrency hovering below the 50-day EMA but above the 200-day EMA.

The XRP price hovers around the $0.60 level awaiting a strong bullish surge and a crucial breakout all the way to $1.0. However, the XRP investors remain cautious of Ripple’s response to the SEC’s recent filing, ahead this month.

Last month on March 26, the U.S. Securities and Exchange Commission (SEC) filed a redacted version of the remedy-related opening brief. Furthermore, the securities regulator has also argued for additional punitive penalties on Ripple over charges of securities law violations. Furthermore, the SEC demands a court order that further prohibits Ripple from selling XRP to its institutional clients, as per the Crypto News Flash report.

Ripple is required to submit its opposition brief by April 22, with a redacted version slated for release on April 24. The response to the initial brief must specifically address the issue of post-complaint conduct.

Will The Court Prohibit Ripple from Selling XRP

The financial capacity of Ripple to pay potential punitive penalties could be a crucial factor. However, any court order prohibiting Ripple from selling XRP to institutional investors in the US could significantly impact its plans for expanding its business in the country.

According to US case law, Ripple might have an opportunity to address allegations of violating securities laws post-complaint. In the Morrison vs. NAB case, the US Supreme Court ruled that the SEC only has jurisdiction over sales made within the US. If Ripple can demonstrate that all post-complaint sales occurred outside the US, the court might impose less severe penalties.

The penalty amount could potentially be lower than the $729 million cited in the initial brief, limited to proceeds from XRP sales to US institutional investors before the complaint.

Additionally, Ripple must show that its post-complaint XRP sales did not contravene US securities laws to avoid being prohibited from selling XRP to US institutional investors.

XRP Price Action

The XRP price maintained its position below the 50-day Exponential Moving Average (EMA) while remaining above the 200-day EMA, signaling a bearish trend in the short term but a bullish outlook over the longer term.

A potential breakout above the 50-day EMA could pave the way for XRP to test the resistance level at $0.6609. Investors are advised to closely monitor updates regarding the SEC’s actions and any developments related to crypto regulation, as they could impact XRP’s performance.

On the contrary, if XRP drops below the 200-day EMA and the support level of $0.5740, it may prompt a test of the trend line. The Relative Strength Index (RSI) reading of 45.78 suggests a possible decline in XRP’s price towards the trend line before reaching oversold territory.

Furthermore, as reported by Crypto News Flash, Ripple has been undertaking key developments such as the launch of the USD-pegged stablecoin.