XRP traders and investors find themselves in a state of uncertainty amidst the ongoing legal battle between Ripple Labs Inc. and the SEC.
The recent decline in XRP’s value followed a pivotal court decision related to its status under US securities laws. Specifically, on Wednesday, XRP closed 1.2% lower at $0.4697, reflecting the market’s reaction to developments in the SEC versus Ripple case.
The core issue revolves around potential penalties Ripple may face for alleged securities law violations. Despite no immediate progress in the SEC’s lawsuit, the impending court ruling remains a critical focal point within the cryptocurrency market.
There is widespread expectation that the SEC will contest Judge Analisa Torres’ ruling concerning XRP’s classification. Judge Torres previously determined that XRP’s sales do not meet the criteria outlined in the Howey Test, a significant benchmark for defining securities. Following this decision, the SEC attempted an interlocutory appeal, which was denied, necessitating a wait for the final verdict.
This regulatory uncertainty, coupled with XRP’s valuation below the $0.60 threshold, underscores the market’s ambivalence. However, a glimmer of hope arises with the approach of the US elections.
Recent reports indicate that the Republican Party is actively courting crypto voters, a strategic move exemplified by initiatives such as the Fairshake super PAC. Supported by contributions from Ripple and Coinbase, Fairshake recently achieved success in a New York primary by unseating a prominent crypto critic, Jamaal Bowman, from his congressional seat. This outcome underscores the increasing influence of crypto-friendly factions in shaping political landscapes.
Eleanor Terrett of Fox Business reported on Fairshake’s role in this victory, emphasizing the industry’s commitment to fostering innovation and employment. The potential for a more crypto-friendly Capitol Hill following the upcoming elections could bode well for XRP and the broader market.
Moreover, speculation swirls around the impact of a Republican victory on SEC Chair Gary Gensler’s tenure. A change in leadership might signal a departure from the current “regulation through enforcement” stance that has burdened the crypto market. There are conjectures that under such circumstances, a resurgence in XRP’s value, potentially revisiting its peak of $3.3509, could ensue.
Presently, XRP is trading at $0.4759, reflecting a modest 0.5% increase over the past 24 hours. With a trading volume of $865 million and a market cap of $26 billion, technical indicators suggest that XRP remains below both the 50-day and 200-day Exponential Moving Averages (EMAs), indicating a prevailing bearish sentiment. A breakthrough above these levels could embolden bulls to target the 50-day EMA and potentially breach the $0.55 resistance. Conversely, a drop below the $0.4650 support level may trigger further declines towards the $0.45 mark.
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