In the ongoing legal battle between Ripple and the United States Securities and Exchange Commission (SEC), a crucial detail has emerged that may give the cryptocurrency community cause for optimism. The SEC, embroiled in a high-profile case against Ripple, has suffered setbacks in five of its six most recent appearances before the Supreme Court. However, the XRP price has failed to maintain its upward surge recently as it loses critical support levels, bringing bearish woes among XRP holders ahead of the final hearing.
Ripple To Come Out On Top
The SEC’s string of recent Supreme Court losses may indicate that the agency is experiencing difficulties in making its case or adjusting to an evolving legal landscape, potentially leaving room for Ripple to come out on top.
In a recent development, Ripple Labs, along with its executives Brad Garlinghouse and Chris Larsen, have issued a sharp response to the U.S. Securities and Exchange Commission (SEC) in a letter addressing their Supplemental Authority.
The defendants, Ripple, assert that the SEC referred to an out-of-circuit and unpublished district court opinion in their argument. Furthermore, they added that, in the Commonwealth case, the defendants argued that the SEC lacked any substantial evidence to support their defence against Ripple’s Fair Notice argument. This latest news highlights the ongoing intensity of the legal battle between Ripple Labs and the regulatory authority.
Ripple’s legal chief openly criticised the US SEC’s recent track record, remarking that the regulatory body seems to be facing a losing streak at the Supreme Court level.
XRP Price Needs To Test This Level
A key factor contributing to the recent plunge faced by XRP is the dwindling trading volume, signalling a waning interest from both traders and investors in the digital asset. This decline in trading volume can have adverse effects on XRP, as it results in reduced liquidity. Consequently, the asset becomes more vulnerable to price swings and increased volatility, potentially deterring further market participation and investment.
On the daily price chart, the XRP price has broken below the key support level of 23.6% Fib channel. However, the price has enough room before dropping below the EMA-20 trend line at $0.5 on the daily price chart, hinting that bulls have not lost control completely.
As of writing, XRP price trades at $0.5121, declining over 1.5% from yesterday’s rate. Analysing the 4-hour price chart, the XRP price has formed a descending triangle pattern. If the XRP price breaks below EMA-100 at $0.5, a steep decline is expected. To initiate a bullish reversal, XRP needs to test the $0.48 level.
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It has been a difficult week for XRP, as the token price faces bearish headwinds, with support levels that were seen as key to its future pricing, now being breached and all upside further diminished. The current level of XRP’s price — $0.19 — marks a 13% drop from the support level it held for the past couple of weeks at approximately $0.22.
This recent development may be of particular concern to XRP holders, as retracements back to the $0.22 support level had previously been extremely successful in halting further losses, giving the coin much-needed reprieve. With the current level of $0.19, now cleared, the outlook looks bleak going forward.
However, all may not be lost for XRP just yet. Four days ago, the token saw a brief reprieve, rising to a late-week high of $0.21 — a strong indication of the level that could ultimately revive its price. Such a move to this overhead resistance could instill confidence back into XRP’s following, potentially allowing it to reclaim some of its past bullish vibes.
However, with the long-term outlook still uncertain, taking a stance now may be premature. As noted at the start of the week, XRP held well at the $0.22 level for some time and combined with an uptick in corporate-led investments, it may remain supported at the current level of $0.19 going forward.
Only time will tell if the current oversold position of XRP will find enough of a revival to propel it back to its previous level of support. Nevertheless, the potential of XRP climbing back to the $0.21 level should not be overlooked and if realized, could indicate a sure-fire route to the return of healthier prices.