TL;DR
- Ripple was fined $125 million for violating certain securities laws, and while the company sees it as a victory, the SEC might appeal.
- SHIB’s valuation has dropped over 25%, with signs of declining investor interest and reduced whale activity.
- Despite a 12% price decrease, analysts suggest Bitcoin (BTC) may soon break out and reach new highs.
Ripple v SEC
While the legal battle between Ripple and the US Securities and Exchange Commission (SEC) witnessed a major development earlier this month, some experts believe the case is far from over.
Recall that Judge Torres ruled that the company had violated certain securities laws and must pay a $125 million fine. The sum might sound substantial, but it is actually a fraction of the regulator’s initial demand for a whopping $2 billion.
Ripple’s CEO Brad Garlinghouse and many other industry participants labeled the decision a “victory” for the firm. The exec also assured the company will respect the court’s decision and pay the penalty.
It is worth noting, though, that the SEC has the right to appeal the ruling. Not long ago, Ripple’s chief legal officer, Stuart Alderoty, said such an action would not surprise him. On the other hand, he noted that the agency won’t be able to contend some of the most essential court rulings:
“XRP’s status as “not a security” and the secondary market trading of XRP as “not security transactions” that is the law and that does not change even if the SEC appeals.”
Alderoty also estimated that the SEC’s chances of winning the lawsuit are slim, maintaining that the Court of Appeals reverses the initial court decisions in less than 10% of the cases.
“Given Judge Torres’ careful and thoughtful treatment of all of the issues in this case, we are very confident that any appeal would stand as a challenge for the SEC. If I were advising the SEC (not as Ripple’s chief legal officer but as a lawyer), I would recommend that they do not appeal,” he concluded.
Others like Dennis Kelleher (a former Senior Senate Staffer) assumed that the Commission has a huge chance of winning on appeal:
“Chance of the US SEC winning on appeal 90%: the Ripple judge got 90 years of law upside down when he ruled sophisticated investors get the protection of the securities laws, not unsophisticated investors. That’s why all the other judges have rejected it.”
SHIB Bears in Control
The popular meme coin – Shiba Inu (SHIB) – remains one of the trendiest topics in the crypto space despite its price decline as of late. Its valuation is down over 25% on a monthly scale, while its market capitalization plunged below $8 billion.
Some worrying signs suggest that the pain for the bulls may continue in the near future. Namely, those include the Net Network Growth which is down 0.19% This could signal waning interest in the cryptocurrency and a decrease in community engagement.
The number of large transactions, which is a gauge for whale activity, has also headed south. Reduced activity from large investors could be perceived as a signal that the overall sentiment around the meme coin is weakening, which might lead to increased selling pressure and a possible price drop.
How’s BTC Doing?
Last but not least, we will touch upon Bitcoin (BTC), whose price has also seen better days. It currently trades at around $58,500 (per CoinGecko’s data), representing a 12% decline in the last month.
Many analysts believe a bullish move might soon replace the negative trend. The X user Mags thinks BTC has formed a “broadening wedge” on its price chart, expecting a breakout toward a new all-time high of over $90,000.
Titan of Crypto chipped in, too, suggesting that BTC’s price fluctuations have initiated a “megaphone pattern” that could be followed by a rally to as high as $86,000. The formation is a popular technical analysis pattern characterized by two diverging trendlines resembling a megaphone. It often indicates a period of increasing uncertainty in the market and might be followed by a wild move in any direction.
The post Important Ripple v SEC Lawsuit Updates, Bearish Shiba Inu (SHIB) Outlook, and More: Bits Recap August 19 appeared first on CryptoPotato.