The XRP price is at risk of falling to the $0.42 support level due to market weakness and ongoing legal challenges. The U.S. Securities and Exchange Commission (SEC) and former SEC lawyers have challenged Ripple's arguments on penalties and injunction, which could lead to a further decline in the XRP price.

SEC Filing Intensifies Legal Woes for Ripple

The SEC has responded to Ripple's supplemental authority, arguing that the firm's citations to settlements are inapt and that the penalties are not comparable to litigated cases. The SEC also stated that Ripple has failed to agree on a settlement and that the firm's arguments are not convincing. The SEC is seeking a final judgment against Ripple to pay $876,308,712 in disgorgement, $198,150,940 in prejudgment interest, and $876,308,712 in civil penalty.

Ex-SEC Lawyers Challenge Ripple

Former SEC lawyers James Farrell and Marc Fagel have argued that the SEC may appeal Judge Torres' summary judgment. They also believe that Judge Torres might need to decide on an injunction that could impact Ripple's XRP ODL business. Farrell believes that the SEC wants to obey the law even after Ripple claimed that they have changed their XRP ODL sales after the court warned.

XRP Price to Fall to $0.42?

The XRP price is trading near the key support level, well below the 50-day, 100-day, and 200-day EMA and confirms the bearish trend. If the crypto market fails to rebound due to selling pressure on Bitcoin price amid miner capitulation, XRP price risks falling further to break the channel downside to the next support level at $0.42.