On Saturday, XRP fell 0.22% to end the day at $0.39445. Technical indicators remained bullish, indicating a return to $0.45.

On Saturday, XRP fell 0.22%. Partially reversing a 2.85% gain on Friday, XRP ended the day at $0.39445. Despite the bearish session, XRP avoided levels below $0.39 for the first time since Feb. 8.

During a range-bound morning, XRP fell to a late-morning low of $0.39148. Moving away from the first major support level (S1) at $0.3845, XRP rallied to a late afternoon high of $0.39744. However, missing the first major resistance level (R1) at $0.4030, XRP pulled back to end the day at $0.39445.

SEC Versus Ripple Silence Leaves XRP in a Tight Range

On Saturday, there were no updates from the ongoing SEC v Ripple case to provide XRP price direction. The lack of updates left XRP in the hands of the broader crypto market.

Following the SEC’s moves against Kraken and Binance USD (BUSD), regulatory risk eased in the second half of the week. SEC scrutiny by US lawmakers eased fears that the SEC has free rein to target US cryptocurrency-related companies.

However, anti-crypto sentiment persists at Capitol Hill, with the FTX crash giving a stronger voice to those in favor of traditional asset classes.

Still, for crypto investors, the heightened scrutiny of SEC regulatory activity provided some comfort upon knowing that Capitol Hill is not completely anti-crypto. This fact should allow the digital asset space to continue to mature. However, it could come down to the SEC vs. Ripple case, as well as how much progress the bipartisan bills can make in 2023.

XRP Price Action – Technical Indicators

XRP was down 0.58% at $0.39216. A mixed start to the day saw XRP rally to an early high of $0.39557 before falling to a low of $0.38931. XRP briefly fell through the first major support level (S1) at $0.3915.

XRP needs to move through the $0.3945 pivot to target the first major resistance level (R1) at $0.3974 and Saturday’s high of $0.39744. A return to $0.3950 would signal a bullish session. However, the broader crypto market and SEC v Ripple talk would need to support a breakout.

In the event of another extended rally, XRP would likely test the second major resistance level (R2) at $0.4004. The third main resistance level (R3) sits at $0.4064.

As of late last night, XRP was above the 100 day EMA, currently at $0.39137. The 50-day EMA turned down at the 200-day EMA, with the 100-day EMA pulling away from the 200-day EMA. The signals were bullish.

A bullish cross of the 50-day EMA through the 200-day EMA would support a break of R1 ($0.3974) to the target of R2 ($0.4004). However, a drop-through S1 (0.3915) and the 100-day EMA ($0.39137) and 200-day EMA ($0.39078) would bring the 50-day EMA ($0.38971) and S2 ($0.3885) into play. A drop through the 50 day EMA would send a bearish signal.

By Audy Castaneda

Stablecoins bear the brunt of the latest SEC measures. However, the new investigation of the latter could definitively bury them.

As cryptocurrencies struggle to recover from the BUSD ban, the SEC is facing a new victim: Do Kwon’s USTC. However, when analyzing the press release of the financial authority, it can be assumed that the latter has a very disastrous project for stablecoins.

A New Stablecoin in the SEC’s Sights

After the end of the issuance of BUSD, the crypto sphere fears more and more new sanctions against stablecoins, even their ban. Unfortunately, the SEC may take action soon.

Despite its actions being questioned by the United States Senate, the financial authority continues to hunt down the darkest corners of cryptocurrencies. This time, it faces the famous creator of Terra, Do Kwon. In a statement released on February 16, the SEC accuses the businessman of orchestrating large-scale fraud through its famous stablecoin, USTC.

Unsurprisingly, Do Kwon is also accused of selling unregistered securities to his investors, and of having abandoned them once he pocketed the multi-billion-dollar jackpot.

The U.S. Securities and Exchange Commission tweet reads like follows:

“Today we charged Singapore-based Terraform Labs PTE Ltd and Do Hyeong Kwon with orchestrating a multi-billion-dollar crypto asset securities fraud involving an algorithmic stablecoin and other crypto asset securities.”

Unlike Ripple or Coinbase, for which the security title is not applicable according to the Howey test, Do Kwon would have promised his community high returns in the long term. Therefore, the SEC plans to investigate the entire system surrounding the USTC. They will not hesitate to develop the necessary rules to prevent such an incident from happening again.

Death of Stablecoins Soon?

By investigating a new stablecoin, the SEC seems to be starting a long list of investigations into these tokens. Therefore, there is no immunity against USDC or Tether getting hit on the fingers as well.

This is not good news for stablecoins, says Gabriel Shapiro, general counsel at investment firm Delphi Labs. In fact, depending on the findings of the Do Kwon investigation, the SEC could regulate or even ban the issuance, promotion, trading or even the construction of ecosystems linked to these tokens.

Shapiro tweeted the following:

for UST, the SEC also provides an alternative, non-Howey-based argument, that UST are “rights to subscribe” to a security (LUNA) and thus are themselves securities–again, this is an “enumerated security” type of argument (like the one for LUNA) that does not rely on the Howey.”

In the event of an SEC victory, new restrictions, or even the demise of stablecoins, are expected. The moral of the story: between death and restriction, stablecoins could choose death without hesitation.

By Audy Castaneda