Ripple’s case against the Securities and Exchange Commission (SEC) is very important this year. The outcome of this case could affect the entire cryptocurrency industry as well as XRP price. The court’s decision on whether XRP is a security is crucial. If XRP is ruled as a security, it might impact other cryptocurrencies similarly. This case is being closely watched by many in the industry. The SEC’s argument is that Ripple’s XRP should be classified as a security.
Ripple disagrees, saying that XRP is not a security. The court’s ruling will set a precedent. This means it could influence how other cryptocurrencies are regulated. In the meantime, XRP aims at $10.
Driving Factor for XRP price
Holders of XRP are optimistic about XRP price. They believe the token, which has been held back by a long lawsuit between Ripple and the Securities and Exchange Commission (SEC), could eventually rise to $10. The case, filed in December 2020, has finally reached the trial stage. The SEC has reduced its initial $2 billion penalty proposal to $102.6 million. Ripple’s attorneys had proposed a $10 million penalty, which is just under 10% of the SEC’s new figure. Despite reaching this critical stage, it is still uncertain when the case will be resolved. Meanwhile, Ripple’s CEO, Brad Garlinghouse, who is also a defendant in a separate lawsuit in California, believes that a spot XRP ETF is inevitable.
Ripple’s senior attorney, Stuart Alderoty, stated that the California judge dismissed all allegations that Ripple violated federal securities laws. He also mentioned that the New York ruling, which states that XRP is not a security, remains unchanged. Many pro-Ripple lawyers criticize Gary Gensler, the Chair of the SEC, for his actions against cryptocurrency firms and executives. They argue that if Gensler was truly “working for the American people,” he would not have missed the misconduct at the now-defunct FTX exchange. In a post on June 26, Alderoty said the court is finally revealing that Gensler has exceeded his legal authority.
Performance of XRP
XRP remains below the 50-day and 200-day Exponential Moving Averages (EMAs), indicating bearish trends. If XRP moves above these trend lines, it could give bulls a chance to target the 50-day EMA. A break above this level would support a move toward the 200-day EMA and potentially reach the $0.55 mark. Investors should pay attention to updates related to the SEC vs. crypto cases and the SEC’s response to the Binance ruling. These developments could impact XRP’s price.
On the other hand, if XRP falls below the $0.4650 level, bears might push it down to $0.45. The Relative Strength Index (RSI) for 14 days is at 41.88, suggesting XRP might drop to $0.45 before it enters oversold territory. Thus, XRP’s movement depends on breaking key resistance levels or potentially dropping further, influenced by ongoing legal updates and market trends. Investors are closely monitoring these factors to gauge the future direction of XRP’s price.
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