The price of XRP is heavily dependent on the upcoming ruling in the SEC vs. Ripple case, with investors remaining cautious about a decision that could potentially prohibit its sales to US institutional investors.
Analysts predict that XRP could either rally to $0.55 or decline to $0.45 as it currently sits below the 50-day and 200-day EMAs.
On Monday, July 1, XRP’s price failed to make substantial gains, only managing a 0.23% increase following a 0.70% gain on Sunday, June 30. At the time of writing, the asset was trading at $0.47, with a 0.45% surge in the last 24 hours and a 0.61% increase in the past seven days.
The ongoing court case between Ripple and the US Securities and Exchange Commission (SEC) has seen no significant developments, leading to minimal movement in XRP’s price. Investors are eagerly awaiting a court verdict after the SEC filed its opening brief seeking an almost $2 billion penalty and an injunction to prohibit the sales of XRP to institutional investors.
One of the key arguments in the ongoing case is the SEC’s claim that post-complaint Ripple activities resemble the “unlawful” activities that led to the lawsuit in 2020. Ripple’s lawyers have countered this argument, stating that post-complaint sales of XRP were made to accredited investors or through ODL contracts, exempt from securities laws.
Despite this plausible defense, XRP investors remain cautious as the ruling could have significant implications, particularly the possible prohibition of XRP to US institutional investors, potentially triggering a massive downtrend.
Investors are also closely monitoring the SEC’s decision to appeal against the Programmatic Sales ruling by Judge Analisa Torres in July 2023, following the recent dismissal of the SEC vs. Binance case by Judge Amy German Jackman. The conflicting opinions of different judges add to the uncertainty surrounding XRP’s future.
With XRP investors being cautious, the asset’s price has been significantly impacted, hovering below the 50-day and 200-day EMAs. Analysts expect a move through the 50-day EMA to result in a run at the 200-day EMA, potentially touching the $0.55 mark. However, a fall below $0.4650 could cause XRP to decline to $0.45. The 14-day Relative Strength Index (RSI) reading of 42.80 suggests that the price may fall into the $0.45 zone before entering the oversold area.