XRP price cheers Ripple vs SEC verdict, but brace for a reversal

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As a seasoned researcher who has closely followed the crypto market for over a decade, I find myself both exhilarated and cautious about Ripple’s recent victory against the SEC. The court ruling is undeniably a significant step forward for Ripple, and it could indeed have far-reaching implications for other altcoins that might face similar legal battles with the SEC.

As a seasoned cryptocurrency investor with over a decade of experience under my belt, I must say that this week has been particularly exciting for Ripple enthusiasts like myself. The strong comeback staged by Ripple’s price is a testament to the resilience and potential of this digital asset. Having closely followed the legal battle between Ripple and the Securities and Exchange Commission (SEC) in the United States, I can confidently say that the victory secured by the developers has given a much-needed boost to the coin’s prospects. This case has been a long time coming, and it’s heartening to see the positive impact it has had on Ripple’s price. I am optimistic about the future of this digital asset and its potential to become a major player in the ever-evolving world of cryptocurrency.

Ripple’s big win vs SEC

For three days straight, the price of Ripple’s XRP token has climbed, peaking at $0.6430. This represents a jump of 48% from its lowest point this month and an increase of 70% compared to its lowest point in July.

In a US court ruling, the judge overseeing the well-followed case ordered the company to pay a $125 million fine, much lower than the $2 billion that the SEC was seeking. 

The court additionally prohibited Ripple from performing certain actions, according to a remark by Attorney Jeremy Hogan, who closely monitors the case. He characterized this development as a significant victory for Ripple.

In addition, he made clear other aspects of the decision, pointing out that Ripple has the ability to continue selling a majority of its XRP and On-Demand Liquidity (ODL) tokens because they fall outside of U.S. regulatory oversight. Furthermore, Ripple is allowed to sell XRP to financial institutions, but only if it does so under an exception to registration requirements.

There seems to be a flurry of inquiries about how the injunction affects Over-the-Counter (ODL) sales. However, I don’t foresee any changes whatsoever in the current situation for the following reasons:

— Jeremy Hogan (@attorneyjeremy1) August 7, 2024

The triumph of Ripple has sparked optimism among other alternative coins, as it suggests they may also have a chance to prevail if the SEC takes legal action. Notably, the SEC has recently recanted its claim that cryptocurrencies such as Solana (SOL), Cardano (ADA), and Polygon (MATIC) are securities in the ongoing case against Binance.

In the recent ruling regarding Ripple, it was Stellar Lumens (XLM), a widely used cryptocurrency with a market capitalization nearing $2 billion, that felt the impact most directly. Both Ripple and Stellar aim to tackle the problem of international money transfers by working alongside prominent organizations. Notably, Jed McCaleb, the founder of Stellar, was initially associated with Ripple as a co-founder.

XRP price could suffer a harsh reversal

There appears to be a multitude of queries about how this injunction affects Online-On-Demand Liquidity (ODL) sales. However, it seems to me that the decision won’t alter the existing situation in the least for these reasons:

— Jeremy Hogan (@attorneyjeremy1) August 7, 2024

Despite the ongoing excitement about the Ripple vs SEC ruling, there is a risk that XRP could suffer a reversal in the coming days.

Given the anticipated possibility of a settlement between Ripple and the SEC, traders might begin offloading their holdings in anticipation of the news.

As someone who has been closely following the cryptocurrency market for several years now, I have witnessed numerous instances where initial rulings can significantly impact token prices. Last June, when the ruling came out, I saw the XRP price surge from $0.47 to an impressive high of $0.9322. However, my experience has taught me that such a rapid increase often serves as a warning sign, and this instance was no exception. The rebound turned out to be a “bull trap,” leading the token back into its downward trend. Unfortunately, it reached a low of $0.382 in July. It’s a reminder that the cryptocurrency market can be quite unpredictable and volatile, making it essential for investors to stay informed and cautious.

For XRP‘s upward trend to persist, it must surpass the significant barrier at approximately $0.6586 (the highest point on July 31). Clearing this hurdle would disrupt a potential double-top pattern with a neckline at around $0.3812. This move could potentially boost the token’s value by around 23%, pushing it up to about $0.7490.

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2024-08-08 16:24