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Ripple is engaged in a high-stakes legal battle with the U.S. Securities and Exchange Commission (SEC) that might have a significant impact on the future of cryptocurrencies.
Both sides are presenting their closing arguments in the continuing litigation, which centers on the SEC’s claims that Ripple’s XRP coin is an unregistered securities.
Chief Legal Officer Stuart Alderoty and the rest of Ripple’s legal team have put up a strong fight, claiming that there are fundamental flaws in the SEC’s case.
Alderoty has cited a case similar to Binance’s BUSD stablecoin, implying that a positive decision in that instance may strengthen Ripple’s position.
SEC’s proposed $2 billion sentence against Ripple has drawn criticism from legal experts involved in the case, suggesting that the court may reject such a large penalty.
The cryptocurrency at the center of the legal issue, XRP, may see a spike in value if this scenario plays out.
Ripple has not wavered in its resolve to grow its commercial activities in spite of this ominous cloud. The business is aggressively searching for new markets, and it intends to launch its XRPL solutions in Japan to show how resilient it can be in the face of difficulty.
This legal battle notwithstanding, the XRP ecosystem has proven very resilient. With a market valuation of $28 billion, XRP is firmly established as the seventh-largest cryptocurrency by market capitalization.
Its trading volume over the course of a day is $385 million, and as of right now, it is trading at $0.505, up 0.39% from the previous day.
With the formation of a head and shoulders pattern in March, which indicated negative momentum, XRP has consistently shown a pattern of lower highs and lower lows on the weekly charts.
The development of a full head-and-shoulder pattern on the daily chart supports the negative outlook even more.
XRP found support at the $0.43 low after breaking below both the head-and-shoulder pattern’s neckline and an ascending trendline on April 12.
Since then, XRP has increased in value to try and break the broken neckline, but it has twice been rejected, indicating a double top at the $0.56 high.
Given that the bulls have been unable to break through the resistance level, this double-top pattern indicates that the momentum is still bearish.
The price of XRP is currently declining, and it is most likely going to test the double top’s lower boundary at roughly $0.478 before heading back toward the $0.44 support zone.
Bearish pressure persisted in the daily Relative Strength Index (RSI) reading of 40 signals, bringing the indicator closer to the oversold level.
XRP is evidently rejected twice at the critical $0.56 resistance level on the 4-hour chart. The parallel range in which the price is trading suggests a possible move in the direction of the $0.47 target.
XRP may decline much deeper to the $0.44 support zone if it breaks below the level.
The cryptocurrency community is holding its breath as the SEC vs. Ripple legal dispute nears its conclusion.
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The verdict in this well-known case might have a significant impact on the regulatory environment for digital assets and possibly open the door for more acceptance and clarity for cryptocurrencies like XRP. Analysts believe that after the SEC issue is resolved, XRP will be able to reverse Ethereum.
Disclaimer: The information provided is for educational and informational purposes only. It does not constitute financial advice, and you should always conduct your research or consult with a professional before making any investment decisions.
