Ripple Labs may need to liquidate over 3.12 billion XRP (XRP-USD) tokens as the U.S. Securities and Exchange Commission (SEC) seeks a staggering $1.95 billion in fines for securities law violations. This development follows the SEC’s detailed proposal to hold Ripple accountable for its alleged breach of federal securities laws, allegations the cryptocurrency community regards as the SEC trying to save face after a series of embarrassing losses in court.
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SEC’s Stance and Ripple’s Response
The pending fine proposed by the SEC continues to vex the broader cryptocurrency community. This is especially true after revelations that the SEC demands Ripple pay $1.95 billion in fines within 30 days of a final court judgment. Could Ripple pay the fine? Yes, but what kind of effect that would have on XRP and the broader market has generated concerns.
Ripple’s holdings, the great majority sitting in escrow wallets totaling 40,100,000,005 XRP, represent a vast reserve that could be tapped to meet the SEC’s demands. With the current market price of XRP near $0.63, selling approximately 3.1 billion XRP tokens could generate the necessary funds, albeit with potential negative market repercussions.
Weekly Technical Analysis and Recent Performance
The congested price action XRP’s faced doesn’t show any clear signs of ending soon. TipRanks’s technical analysis tool offers mixed signals on a weekly timeframe. The Moving Averages Convergence Divergence (MACD) indicator suggests a Sell with a value of 0.01. At the same time, XRP’s price above its 20-period and 50-period exponential moving averages indicates a bullish sentiment and a Buy among investors.
Despite a slight weekly decline of -0.4%, XRP concluded March with a +7.27% gain from the opening price of $0.59, closing the quarter at $0.63—a +2.41% increase.
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