XRP Slides as Court Ruling Looms

On Jun 27, 2024

XRP traders and investors remain unsure of the next steps in the SEC versus Ripple lawsuit.
While a verdict on remedies payment is likely soon, the coming election might change narratives.

XRP, the digital asset associated with Ripple Labs Inc., recently saw its price plummet as a court ruling in the ongoing case with the SEC came into view. Specifically, XRP ended its Wednesday session, decreasing by 1.2% to $0.4697, according to data our data.

XRP Struggles Amid Ongoing SEC vs. Ripple Case

The primary source of contention is the potential penalty Ripple faces for alleged violations of US securities laws. While no immediate developments arose in the SEC vs Ripple lawsuit, a court ruling remains a focal point in the crypto market.

Many anticipate the SEC will appeal a court ruling by Judge Analisa Torres regarding XRP sales. In July 2023, Judge Torres ruled that XRP programmatic sales do not satisfy the Howey Test, a crucial factor in classifying securities. Subsequently, the SEC filed a motion of interlocutory appeal, as previously reported by Crypto News Flash. The appeal was, however, rejected by the Judge, forcing the agency to wait for the final verdict.

This regulatory uncertainty, coupled with XRP’s price below the $0.60 mark, paints a picture of a market unsure of its standing. However, a potential silver lining emerges in the form of the upcoming US elections.

Per earlier reports from Crypto News Flash, the Republican Party is actively fighting for the crypto vote. This move is exemplified by super PAC Fairshake, which has received donations from Ripple and Coinbase. Fairshake’s recent success in a New York primary, where a crypto critic lost his seat, highlights the growing influence of crypto-friendly forces.

Fox Business journalist Eleanor Terrett reported the defeat of Jamaal Bowman, a vocal crypto critic, in New York’s 16th District. This loss is attributed partly to Fairshake’s targeted advertising campaign.

Fairshake spokesperson Josh Vlasto celebrated the outcome, highlighting the industry’s commitment to supporting innovation and job creation. A potential move towards a more crypto-sympathetic Capitol Hill could benefit XRP and the entire market.

Furthermore, a Republican victory in the upcoming presidential election could shorten SEC Chair Gary Gensler’s tenure. This, in turn, might signal the end of the “regulation through enforcement” approach that has plagued the crypto market. Speculations abound that a potential Trump win and Gensler’s possible departure could see XRP revisit its all-time high of $3.3509.

XRP’s Current Price Action

At press time, the XRP price is $0.4759, demonstrating a nominal increase of 0.5% in the past 24 hours. The trading volume and market cap are $865 million and $26 billion, respectively.

Based on technical indicators, XRP remains firmly below the 50-day and 200-day Exponential Moving Averages (EMAs), reinforcing the bearish trend. A surge above these trend lines could empower bulls to target the 50-day EMA, potentially leading to a test of the 200-day EMA and the $0.55 resistance level.

However, a drop below the $0.4650 support level could trigger a further slide towards the $0.45 handle.