Ripple could make a “reset” in the crypto space, thanks to the SEC
With a conclusive end to the SEC vs Ripple case, Ripple will regain its position in the crypto space
Optimism towards a favorable and early conclusion in the SEC vs Ripple case waned on Monday. Hopes of legal activity in response to the summary judgment applications waned, with the court schedule unchanged at the start of the week. Investors may also have been disappointed that the SEC and Ripple did not announce any plans to settle. Barring a surprise settlement, the next date on the schedule is Oct. 18, when the parties must file all materials related to objections to motions for summary judgment.
On Monday, XRP fell by 4.61%. Reversing a 0.50% gain from Sunday, XRP ended the day at $0.46791. A bullish start to the session saw XRP reach an early high of $0.50134. Failing to reach the first major resistance level (R1) at $0.5153, XRP fell to a late morning low of $0.45800. XRP fell through the first major support level (S1) at USD 0.4706 before briefly retreating to USD 0.479.
The XRP price posted a sharp rally against Bitcoin (BTC) on continued optimism about a potential settlement between Ripple, a San Francisco-based blockchain payments firm, and the US Securities and Exchange Commission (SEC). In other words, Ripple and the SEC agreed that the court should use the available evidence to reach a verdict on whether the blockchain firm illegally raised money by selling XRP by December 2022, thus avoiding a trial.
XRP’s price has risen roughly 75% and 60% against Bitcoin and the dollar, respectively, since Ripple’s lawsuit, fueled by optimism about a possible victory for Ripple. Unfortunately, the lack of trading volume and gradual decline in inflows led to an 18% reversal from the local high of $0.56. If bulls cannot hold the asset’s value above the aforementioned moving average, we will most likely see the return to the downtrend that the asset has been in for a year.
After the case was registered, the XRP price suffered a huge loss. The cryptocurrency lost its market position and plummeted from third to seventh position in a matter of days. Remarkably, even parent company Ripple did not take the matter lightly. Instead of planning for a simple settlement, Ripple stepped in to prove its position by taking a court standoff and inviting more eyes and attention to the claim. Finally, Ripple gets what is expected. Yes, the upper hand in the SEC vs Ripple case. There were times when the case went completely in favor of the SEC. In the worst case scenario, Ripple would have lost its XRP cryptocurrency and the entire digital asset market must have faced the heat from the ruling. However, a defeat by the SEC could cost even more as it affects the credibility of government agencies.
Meanwhile, there was renewed optimism last week that Ripple would prevail in this legal battle. Both parties sought summary judgment in separate filings in the United States District Court for the Southern District of New York.
These judgments are issued when a party believes there is enough evidence to settle without a trial. Furthermore, Ripple’s management has maintained that the SEC has failed to establish a basis for classifying XRP as a security.
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