Ripple's XRP continues to battle with ongoing legal challenges and price fluctuations. Currently trading at $0.4448 XRP has seen a 1.13% increase in the last 24 hours but a 2.72% decrease in the last 7 days. With a market cap of $24.7 Billion XRP holds the 7th position while its 24-hour trading volume stands at $946 million which is down 8% in the same timeframe.
The long-standing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) remains a focal point for investors and market watchers. Initiated in December 2020 the lawsuit accuses Ripple of raising over $1.3 billion through an unregistered securities offering of XRP tokens. Throughout 2023 Ripple has secured significant partial victories in court shifting the balance in its favor.
As the case progresses the potential penalty remains a subject of debate. The SEC initially proposed a $2 billion in penalties but has since adjusted its stance to $102.6 million. Ripple on the other hand argues for a maximum penalty of $10 million. Some optimistic observers like attorney Fred Rispoli predict a resolution by July 31, 2024 with a penalty not exceeding $25 million for Ripple and no disgorgement.
Recent outcomes have seen Ripple citing Judge Amy Jackson's decision in the Binance case which dismissed claims that secondary market sales of BNB tokens constituted securities transactions. Ripple defense team argues that this ruling supports their stance against "harsh remedies" for alleged illegal XRP sales. The SEC however, maintains that the Binance case is "wholly irrelevant" to Ripple's situation.
On the technical analysis side XRP price action has been noteworthy. The daily chart shows a recent breakdown below an ascending trendline on June 7 reaching a low of $0.45 at a support level before recovering for a retest. Subsequently the price dropped further breaking below a horizontal support level of around $0.46 to hit a low of $0.3827 on July 5.
Since then to date XRP has been trading bullish and is currently approaching the $0.46 resistance zone and a supply zone around $0.47. The Relative Strength Index stands at 42, recovering from oversold conditions below 30 a few days ago indicating a buildup of bullish momentum. A bullish crossover appears likely also therefore supporting this positive trend.
Our point of interest remain at the $0.46 level to determine whether bearish momentum will resume or if XRP will start a bullish recovery. Adding to the notion, a crypto analyst on X has pointed out that XRP is experiencing one of the tightest monthly Bollinger Band squeezes in its history and across the crypto market. The last time such a squeeze occurred XRP surged by 60,000% leading to speculation about a potential "parabolic pump" in the near future.
As we all await the final ruling in the SEC lawsuit XRP price action remains a key focus. The outcome of this legal battle could greatly impact XRP market performance and Ripple's future operations.