Ripple erases gains from earlier this week as SEC redacted filing goes public

• Ripple lawsuit develops further as redacted version of SEC filing goes public. 
• Ripple, SEC and related parties will file motions to seal material from the remedies-related filings by May 13.
• XRP wipes out gains since Monday and dips to a low of $0.51, early on Wednesday. 

Ripple (XRP) dipped to $0.51 low on Wednesday, erasing its gains from earlier this week. The Securities and Exchange Commission (SEC) filing is now public, in its redacted version. Ripple and the SEC have completed their filings and brought supporting evidence, the lawsuit moves to the next phase where related parties file omnibus letter motions. 

The motion will seal or redact remedies-related filings and supporting evidence by the May 13 deadline. 

Daily Digest Market Movers: Ripple and SEC head to next phase of the lawsuit  

• Ripple and the SEC have completed their remedies-related filings and redacted versions have been made available to the public. 
• There are two key issues that the regulator and the payment remittance firm address in recent lawsuit filings. 
• First is SEC’s allegation that Ripple sold unregistered securities (XRP) to institutional clients, pre and post lawsuit, for which the regulator demands $2 billion in penalties. 
• The second issue is Ripple’s counter of $10 million in fines, in its filing the payment remittance firm argues that the SEC’s demand for $2 billion is unfair and cannot be explained. 
• The regulator has dropped its lawsuit against Ripple executives Brad Garlinghouse and Chris Larsen, and introduced comments from SEC Chief Assistant Accountant Andrea Fox, on the firm’s financial statements. 
• In its latest filing, the SEC addresses Ripple’s defense of its institutional XRP sales, and conduct pre and post complaint. 

• The SEC slams Ripple for its counter of $10 million and notes that low penalty may not deter the firm from future large-scale capital raises without registration. 
• The court is expected to rule on the issue of penalties in May. 

Technical analysis: XRP extends losses, dips to $0.51

Ripple could extend its losses by another 3.35% from the current price of $0.5217, down to $0.5045. This level is the 38.2% Fibonacci retracement of Ripple’s decline from April 9 top of $0.6431 to April 13 low of $0.4188. 

May 1 low of $0.4782 could act as support for XRP in the event of further decline. 

While the histogram bars on the Moving Average Convergence Divergence (MACD) indicator are above the neutral line, it points at waning positive momentum. 

XRP/USDT 1-day chart 

A daily candlestick close above $0.5310, the 50% Fibonacci placeholder could invalidate the bearish thesis. XRP could face resistance at the $0.5574 level, the 61.8% Fibonacci retracement of the decline between April 9 and 13.