In a high-stakes legal battle that could shape the future of cryptos, Ripple is locked in a fierce clash with the U.S. Securities and Exchange Commission (SEC). The ongoing lawsuit, which revolves around the SEC's allegations that Ripple's XRP token is an unregistered security, has reached a critical juncture, with both parties making their final arguments.

Ripple's legal team, led by Chief Legal Officer Stuart Alderoty, has mounted a formidable defense, arguing that the SEC's case is inherently flawed. Alderoty has pointed to a similar case involving Binance's BUSD stablecoin, suggesting that a favorable ruling in that matter could bolster Ripple's position.

Legal experts weighing in on the case have expressed skepticism about the SEC's proposed $2 billion fine against Ripple, raising the possibility that such a substantial penalty may be rejected by the court. If this scenario unfolds, it could trigger a surge in the value of XRP, the cryptocurrency at the heart of the legal dispute.

Despite this dark cloud, Ripple has remained firm in its commitment to expanding its business operations. The company is actively exploring new markets, with plans to introduce its XRPL solutions in Japan, demonstrating its resilience in the face of adversity.

Even as the legal battle rages on, the XRP ecosystem has exhibited remarkable resilience. XRP's market cap currently stands at $28 billion, solidifying its position as the seventh-largest crypto by market cap. Its 24-hour trading volume stands at  $385 million and is currently trading at $0.505, a slight 0.39% gain in the last 24 hours.

XRP Technical Analysis

On the weekly charts, XRP has displayed a consistent pattern of lower highs and lower lows since March, when it formed the head of a Head and Shoulder pattern, signaling bearish momentum.

The daily chart reveals the formation of a complete head-and-shoulder pattern, further reinforcing the bearish sentiment. On April 12, XRP broke down past an ascending trendline and the neckline of the head-and-shoulder pattern, finding support at the $0.43 low. Since then, XRP has rallied to test the broken neckline but faced rejection twice, portraying a double top at the $0.56 high.

This double-top pattern suggests continued bearish momentum, as bulls have been unable to break past the resistance level. XRP's price is currently dropping, and it is more likely set to test the bottom of the double top at around $0.478 and potentially lower toward the $0.44 support zone. The daily Relative Strength Index (RSI) reading of 40 signals continued bearish pressure, pushing the indicator closer to the oversold mark.

On the 4-hour chart, XRP clearly gets rejected twice at the crucial $0.56 resistance point. The price is trading within a parallel range, indicating a potential move towards the $0.47 target. If XRP breaks below the level, it could drop further to the $0.44 support zone.

As the legal battle between Ripple and the SEC approaches its climax, the cryptocurrency world holds its collective breath. The outcome of this high-profile case could have far-reaching implications, shaping the regulatory landscape for digital assets and potentially paving the way for greater clarity and acceptance of cryptocurrencies like XRP. Analysts predict that XRP can flip Ethereum after the SEC case ends.