Key Points:
- XRP declined by 0.29%, closing at $0.5891, underperforming the broader crypto market, which rose by 1.39%.
- Attorney Fred Rispoli predicts a 60/40 chance of an SEC appeal, signaling potential legal challenges for XRP’s programmatic sales.
- The crypto community is closely watching for an SEC appeal, which could have significant implications for Ripple and XRP’s market trajectory.
XRP Price Slips as SEC Appeal Speculation Grows
On Friday, September 27, XRP dropped 0.29%, reversing part of its 1.22% gain from the previous session. The price closed at $0.5891, marking a day of underperformance relative to the broader crypto market, which climbed 1.39% to bring the total market cap to $2.263 trillion.
The ongoing speculation around a potential SEC appeal in the Ripple case continues to weigh on XRP’s price, despite some positive market movements.
SEC vs. Ripple: Speculation Heats Up Over Potential Appeal
The crypto world is buzzing with rumors of a possible SEC appeal in the high-profile SEC v. Ripple case. Pro-crypto lawyers and market analysts are responding to comments made by a former SEC attorney, who suggested that the SEC may target the Programmatic Sales ruling.
In July 2023, Judge Analisa Torres ruled that Ripple’s programmatic sales of XRP didn’t meet the third prong of the Howey Test, which defines whether a transaction qualifies as an investment contract. This ruling was seen as a partial win for Ripple, but uncertainty remains.
Attorney Fred Rispoli shared his perspective on the situation, stating, “I’m currently 60/40 in favor of the SEC filing an appeal, but the stakes are extremely high for the SEC. Not appealing would mean that the ‘programmatic sales’ ruling stands, but only applies to Ripple’s secondary sales. However, an appeal could open the door to a broader legal battle.”
Rispoli further emphasized how critical the Programmatic Sales ruling is for the wider crypto industry: “If the SEC loses an appeal, it would set a precedent that could benefit all litigants fighting the SEC in New York. An affirmed ruling on secondary sales not being considered investment contracts would be a huge win for the industry.”
Ripple has also upped the ante by filing a stay on its $125 million penalty, which could impact the SEC’s decision-making timeline.
Will an Appeal Affect XRP’s Price?
The possibility of an SEC appeal looms large over XRP’s price movement. If the appeal is filed, XRP could face significant downward pressure, with some analysts predicting a drop toward $0.40. Conversely, if the SEC decides not to appeal, XRP could experience a bullish breakout, potentially aiming for the $1.00 mark, as it did following the initial Programmatic Sales ruling.
XRP Price Analysis: Market Trends and Technical Signals
Technically, XRP is hovering above key support levels, with bullish signals on the weekly and daily charts. On the weekly chart, XRP is holding above both its 50-day and 200-day Exponential Moving Averages (EMAs), pointing to continued upward momentum.
A move above the $0.60 level could trigger a rally toward the post-final judgment high of $0.6434, and a break above this could lead XRP toward the $0.70 resistance level. On the other hand, a dip below the $0.5739 support level would bring the 200-day EMA into focus, though buying pressure could pick up around this area.
With a 14-day Relative Strength Index (RSI) reading of 55.75, there’s still room for XRP to rise toward $0.65 before hitting overbought territory.
What’s Next for XRP?
The ongoing legal uncertainty surrounding the SEC’s potential appeal is crucial to watch. Any developments in the SEC vs. Ripple case could have a profound impact on XRP’s price action. Investors and traders should stay informed about SEC-related news, as it could shape the direction of XRP’s market performance in the weeks to come.
For now, XRP’s price remains in a delicate balance, with both bullish and bearish scenarios on the table.
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