The Impact of Ripple’s Potential Win Against the SEC on the Broader Crypto Market
The price of Ripple (XRP) has been trending upward in recent days, even as Bitcoin and most major cryptocurrencies continue to face pressure due to hawkish stances from central banks and ongoing geopolitical uncertainty, particularly from the Ukraine conflict. One of the factors driving this price increase is growing optimism among traders, partly due to favorable developments in the ongoing lawsuit involving Ripple. Additionally, WhaleAlert reports significant whale activity, with 30 million XRP being moved on September 21 and 261 million XRP coins being shifted across various wallets on major exchanges on September 20.
In the 2020 lawsuit, the SEC accused Ripple and its executives of selling unregistered securities. Ripple uses XRP to facilitate cross-border payments through RippleNet, but the central issue is whether XRP should be classified as an investment contract, a type of security regulated by the SEC. Ripple argues that it has never entered into an investment contract with XRP buyers, while the SEC asserts that Ripple’s sales of XRP should have been registered.
Ripple’s CEO Brad Garlinghouse remains optimistic about the case and believes it won’t go to trial, as he feels the judge has enough evidence to make a decision without the need for a jury. Garlinghouse stated:
“Both the SEC and Ripple submitted motions for summary judgment over the past weekend, asking District Judge Analisa Torres to rule based on the facts presented in their filings. Judge Torres now has to decide whether to rule in favor of one party or refer the case to a jury trial. I believe that the facts of the case are clear, so a trial may not be necessary.”
David Gokhshtein, a former U.S. congressional candidate, stated that Ripple’s possible victory over the SEC could have a significant ripple effect on the entire crypto market. Gokhshtein believes that if Ripple prevails, it could set off a surge in the broader cryptocurrency market. A decision on the SEC’s objection is expected soon, with District Judge Analisa Torres expected to make her ruling on or before March 31, 2023, including motions for summary judgment.
Ripple’s Technical Analysis
Ripple (XRP) has been rising since September 16, moving from a low of $0.32 to a high of $0.55. Currently, Ripple (XRP) is priced at $0.46, and a break below the $0.40 support level could signal a potential drop to the $0.35 mark. Conversely, if XRP’s price moves above $0.60, the next resistance could be around $0.70 or even $0.80.
The chart below highlights the trendline, and as long as the price remains below this line, the trend reversal cannot be confirmed, meaning XRP remains in the SELL-ZONE.
Key Support and Resistance Levels for Ripple
The chart below, covering the period from December 2021, shows the primary support and resistance levels for Ripple. XRP has made some gains recently, and if it breaks above the resistance level at $0.60, the next potential targets could be $0.70 or even $0.80. The current support level is at $0.40, and if the price falls below this threshold, it would signal a SELL, with the next target at $0.35. If XRP drops below the stronger support at $0.30, the price could test $0.25.
Reasons Behind Ripple’s Price Increase
Despite surveys indicating that institutional investors remain bearish on cryptocurrencies, Ripple (XRP) has been seeing an increase in price recently. One key factor driving this uptrend is the heightened optimism among traders, especially following positive developments in Ripple’s ongoing lawsuit. David Gokhshtein, a former U.S. congressional candidate, also mentioned that a victory for Ripple in its legal battle could positively impact the entire cryptocurrency industry.
Indicators of a Potential Decline in Ripple’s Price
Ripple (XRP) surged past the $0.55 mark this Friday; however, traders should remain cautious, as the price could easily return to levels seen in early September. A drop below the current support level of $0.40 could signal a decline to $0.35 or lower. Additionally, the broader cryptocurrency market and riskier assets may face limited upside potential, particularly following statements from the Federal Reserve suggesting there will be no rate cuts until 2024. Fed Chair Jerome Powell emphasized that the U.S. central bank will remain committed to reducing inflation, which is at its highest level in four decades.
Sérfræðingaálit og markaðshorfur
Ripple’s price has been increasing in recent days, despite the broader crypto market facing pressure from hawkish central bank policies and geopolitical uncertainties. This positive price movement can be attributed to rising optimism among traders, as well as favorable developments in Ripple’s lawsuit with the SEC. Ripple’s CEO Brad Garlinghouse is optimistic, predicting that the case will not go to trial and that the judge has enough evidence to make a ruling. David Gokhshtein also believes that Ripple’s success in the case could trigger a significant rally for the entire cryptocurrency market.
