When the SEC slammed XRP of violations, Ripple's price started falling drastically

Ripple's digital payment system and its cryptocurrency, XRP, has been ruling the digital market in 2020. Unfortunately, the dominance couldn't last for long. When Securities and Exchange Commission (SEC) slammed the company for trading CRP tokens worth US$1.3 billion in unregistered securities, Ripple faced severe backlash. Even people who were on XRP for a long time backed off from the cryptocurrency, letting Ripple's price suffer. Finally, things are falling back in place for Ripple as experts predict that XRP vs SEC case will conclude in favour of the company.

For a few days now, Ripple is seeing light. Ripple's price is up by 25% recently, with its volume jumping 160% as the total market capitalization grew to US$5.52 billion. XRP's value has jumped over 60% in the past month, hitting a recent high of US$0.9111 on 9th February. However, it is still far away from its all-time high of US$1.83. But there seems to be hope for cryptocurrency. After enjoying massive adoption and attention for a while, XRP went into a gloomy period. It was when the XRP vs SEC court battle began and eventually, many crypto exchanges and trading services stopped offering XRP trades. Eventually, Ripple's price plunged below US$0.18 per token at the end of 2020. Ever since the court battle came to light, XRP's value keeps oscillating based on the legal processes. According to insiders and the company CEO, the case will come to an end this year. Experts predict that the result will mostly be in favor of Ripple.

Where is the Legal Case Heading?

To know how the XRP vs SEC case is taking shape. We should first know the background of it. RippleNet, the platform behind the XRP token, offers a wide range of financial services, alongside compatibility with many different currencies, both digital and fiat. The SEC has filed a lawsuit against Ripple on December 22, 2020, alleging the company of trading US$1.3 billion of their cryptocurrency as security without informing the central agency. They have slammed Ripple's price for not complying with regulations of the traditional securities like stocks, bonds, or options contracts. However, the lawyers are arguing that XRP should be taken into account as a decentralized network or a token rather than an asset.

Towards the end of December, SEC contended that XRP is security since it stands with the Ripple's price platform and helps in the funding. On that accords, XRP should be registered under SEC guidelines and some financial information must be made public.

There are only two paths from now for Ripple. Either SEC lawsuit will crush the cryptocurrency's value with draconian regulations or let XRP lose to flow across American cryptocurrency platforms. But insiders say that the court case is likely to end in favor of Ripple's price. If it does, it will set a tone for the regulations of other cryptocurrencies as well.

Ripple to Face Resistance at US$1

Although Ripple has seen a 68% spike over the past two weeks, the cryptocurrency might face resistance at US$1. The sixth-largest cryptocurrency by market capitalization is finally getting the bullish impulse after months. The price charts suggest that XRP could run towards the 200-day moving average at US$1 before its uptrend reaches exhaustion. At the time of writing, XRP's value was US$0.8174.

Even when XRP indicates a positive run in the near future, investors should take a close look at the cryptocurrency when it reaches its long-stood resistance level of US$1. If Ripple passes through the US$1 mark, it will trigger a FOMO among people, making new investors go berserk over the digital token.