Optimism towards a favorable and early conclusion to the SEC vs Ripple case waned on Monday. Hopes of Court activity in response to the Motions for Summary Judgment filings waned, with the Court schedule unchanged at the start of the week. Investors may also have been disappointed that the SEC and Ripple did not announce any plans to settle. Barring a surprise settlement, the next date on the schedule is October 18, by which time Parties must file all materials relating to oppositions to summary judgment motions.
On Monday, XRP slid by 4.61%. Reversing a 0.50% gain from Sunday, XRP ended the day at US$0.46791. A bullish start to the session saw XRP strike an early high of US$0.50134. Coming up short of the First Major Resistance Level (R1) at US$0.5153, XRP slid to a late morning low of US$0.45800. XRP fell through the First Major Support Level (S1) at US$0.4706 before briefly revisiting US$0.479.
XRP price posted a sharp rally against Bitcoin (BTC) on continued optimism about a potential settlement between Ripple, a San Francisco-based blockchain payment firm, and the U.S. Securities and Exchange Commission (SEC). In other words, Ripple and SEC agreed that the court should use the available evidence to reach a verdict on whether the blockchain firm illegally raised funds by selling XRP by December 2022, and thus avoid a trial.
XRP's price has boomed approximately 75% and 60% versus Bitcoin and the dollar, respectively, since Ripple's court filing, fueled by optimism of a possible win for Ripple. Unfortunately, the lack of trading volume and gradual decrease in inflows led to the 18% reversal from the local high of US$0.56. If bulls cannot hold the asset's value above the aforementioned moving average, we will most likely see the return to the downtrend that the asset has been in for a year.
After the case was registered, the XRP price suffered a major loss. The cryptocurrency lost its market position and slid from third to seventh position in a matter of days. Remarkably, even the parent company, Ripple didn't take the case lightly. Instead of planning for a simple settlement, Ripple stepped in to prove its stance by taking the court standoff and inviting more eyes and attention to the allegation. Finally, Ripple is getting what is expected. Yes, the upper hand in SEC vs Ripple case. There were times when the case completely went in favor of the SEC. In the worst scenario, Ripple would've lost its XRP cryptocurrency and the whole digital asset market must've faced the heat of the ruling. However, a defeat to SEC could cost even more as it impacts the credibility of government agencies.
Meanwhile, there was renewed optimism last week that Ripple would prevail in this legal battle. Both parties sought summary judgment in separate filings with the United States District Court for the Southern District of New York.
These judgments are filed when a party believes there is enough evidence to decide without a trial. Furthermore, Ripple's leadership has maintained that the SEC has failed to establish a foundation for classifying XRP as a security.
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