Summary: The SEC has filed an appeal of a previous ruling deemed to the contrary. Consider the potential impact on XRP price.
XRP prices plunged on Thursday following news that the Securities and Exchange Commission (SEC) has appealed an earlier ruling that fined Ripple $125 million. XRP is up 0.2% at the time of writing, trading at 0.522. Cryptoassets had a tough week losing 11 percent of their value as risk-off sentiment dominated the market ahead of the SEC’s decision.
Nevertheless, the SEC’s move is not entirely surprising. Market regulators were adamant that XRP was sold as a security in its early days. Additionally, a presentation to the U.S. Congress hinted at the possibility of an appeal, despite significant rebuke of the SEC by some members of Congress.
Judge Annalisa Torres’ decision in the earlier case is largely seen as shaking up the SEC’s main pillars in this case, and it will be interesting to see how the SEC repackages the case on appeal. It will be. The judge ruled that XRP issuer Ripple did not sell the tokens as securities to investors on an exchange, but rather that institutional investors purchased the tokens as securities. This will be a key issue as Ripple is widely expected to file a countersuit within the next two weeks.
According to Santiment data, there has been a sharp spike in trading volumes related to the XRP price in recent days, highlighting the importance of the SEC complaint affecting the XRP price. The excitement surrounding XRP is palpable.
Despite a lengthy legal battle, the company has been resilient and remains in the top 10 crypto assets by valuation. In a recent development, Bitwise held an offering for its XRP Exchange Traded Product (ETP) on September 30th, highlighting the asset’s continued attractiveness amidst the storm.
However, approval after filing an appeal may take some time. Nevertheless, this also hints at the potential for XRP to accumulate in the coming days and the potential for an explosion if this incident goes Ripple’s way. On the other hand, XRP has been resilient since the litigation began in December 2020, so we expect it to potentially see some gains during the appeals period.
XRP approaches major support
XRP has reached the neckline of the double top pattern near $0.517, which has served as a support level for the token since August. However, the second support at the psychological mark of $0.500 is more important and a break below that level could strengthen the bearish momentum.
XRPUSD on daily chart with two major support levels
XRP price prediction
XRP price has been gaining momentum recently, and if the price movement stays above 0.520, it is likely to favor upside. In that case, the XRPUSD pair could rally to the first resistance level at 0.529. However, stronger momentum could break that level and test 0.537.
On the other hand, a break below 0.520 will favor sellers, with the first support likely at 0.514. An extended period of bearish control could result in a break below that level, invalidating the upward narrative. Also, the decline could extend to the tested value of 0.507.
