A lack of SEC v Ripple case updates and external market forces led to a shift in sentiment towards the case. Optimism towards an early conclusion had fueled an XRP return to $0.55 before pulling back. Hopes of Court activity in response to the Motions for Summary Judgment filings stopped, as the Court schedule remained unchanged at the start of the week. Investors were also disappointed when 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.
At the time of writing, the XRP price is 0.442 with an upward surge of 0.57%.
XRP needs to move through the $0.4758 pivot to target the First Major Resistance Level (R1) at $0.4935 and the Monday high of $0.50134. In the meantime, any change of update in the SEC v Ripple case and support from the broader crypto market would bring $0.50 back into play. Experts predict further that an extended rally would support a run at the Second Major Resistance Level (R2) at $0.5191 and $0.52. The Third Major Resistance Level (R3) sits at $0.5624. Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4502 in play. Barring an extended sell-off, XRP should steer clear of the Second Major Support Level (S2) at $0.4324.
The SEC in December 2020 brought a suit against the company, alleging that Ripple, its CEO Brad Garlinghouse, and co-founder Chris Larsen engaged in an illegal securities offering, during which they each personally sold XRP for hundreds of millions of dollars. If the SEC wins the case, XRP (the native cryptocurrency of the Ripple Blockchain) will be considered security rather than a currency in the US. This could, in turn, set a legal precedent that results in similar cryptos being classified as securities as well. Therefore, the case against Ripple is important for all stakeholders within the crypto space, including investors, blockchain innovators, and lawmakers worldwide.
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