Uncertainty Prevails for XRP Traders and Investors in SEC versus Ripple Lawsuit
The ongoing legal battle between the Securities and Exchange Commission (SEC) and Ripple Labs Inc. has left XRP traders and investors in a state of uncertainty. While a verdict on remedies payment is expected soon, the upcoming election has the potential to significantly alter the course of the case.
XRP, the digital asset associated with Ripple Labs Inc., recently experienced a sharp decline in price as the court ruling in the SEC case loomed. According to our data, XRP ended its Wednesday session with a 1.2% decrease, trading at $0.4697.
The main point of contention in the SEC versus Ripple lawsuit is the potential penalty that Ripple may face for alleged violations of US securities laws. While there have been no major developments in the case, the court ruling remains a focal point in the cryptocurrency market.
Many anticipate that the SEC will appeal a court ruling by Judge Analisa Torres regarding XRP sales. In July 2023, Judge Torres ruled that XRP programmatic sales do not meet the criteria of the Howey Test, which is crucial for determining whether an asset is a security. The SEC filed a motion of interlocutory appeal, but it was rejected by the Judge, forcing the agency to await the final verdict.
The regulatory uncertainty surrounding the case, combined with XRP’s price below the $0.60 mark, reflects a market that is unsure of its position. However, there is a potential silver lining in the upcoming US elections.
As previously reported by Crypto News Flash, the Republican Party is actively courting the crypto vote. This is evident in the support received by super PAC Fairshake from Ripple and Coinbase. Fairshake’s recent success in a New York primary, where a vocal crypto critic lost his seat, highlights the growing influence of crypto-friendly forces.
The defeat of Jamaal Bowman, reported by Fox Business journalist Eleanor Terrett, is partly attributed to Fairshake’s targeted advertising campaign. Fairshake spokesperson Josh Vlasto celebrated the outcome, emphasizing the industry’s dedication to supporting innovation and job creation. A shift towards a more crypto-friendly Capitol Hill could benefit not only XRP but the entire market.
Furthermore, a Republican victory in the upcoming presidential election could lead to a shorter tenure for SEC Chair Gary Gensler. This could signal the end of the “regulation through enforcement” approach that has been a burden on the crypto market. Speculations suggest that if Trump were to win and Gensler were to step down, XRP may have the potential to revisit its all-time high of $3.3509.
Currently, the price of XRP stands at $0.4759, showing a marginal increase of 0.5% in the past 24 hours. The trading volume and market cap are $865 million and $26 billion, respectively.
Based on technical indicators, XRP remains below the 50-day and 200-day Exponential Moving Averages (EMAs), indicating a bearish trend. A breakthrough above these trend lines could empower bulls to target the 50-day EMA, potentially leading to a test of the 200-day EMA and the $0.55 resistance level.
However, a drop below the $0.4650 support level could trigger a further decline towards the $0.45 handle.
If you’re interested in Ripple (XRP), check out our recommended guides: “Buy Ripple (XRP) Guide” and “Ripple XRP Wallet Tutorial.” Stay updated with the latest XRP news by subscribing to our daily newsletter! No spam, no lies, only valuable insights. You can unsubscribe at any time.