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Why Did XRP Price Plunge to $2 Amid SEC Legal Battle?
XRP’s Legal Tussle Takes a New Turn
The XRP price took a sharp downturn this Thursday, following Judge Analisa Torres’ decision to deny a crucial joint motion from Ripple Labs and the SEC. This decision put a damper on XRP’s attempt to overcome the resistance level at $2.23, intensifying the ongoing legal battle. The latest developments suggest unresolved issues continue to cloud Ripple’s horizon.
Procedural Matters Await Resolution
Despite the SEC withdrawing its appeal, which hinted at a nearing resolution, Judge Torres underscored that multiple procedural issues are still pending. She firmly stated that private settlements cannot override public judicial rulings, emphasizing that the parties cannot bypass a court’s final judgment. This ruling reiterates the complexity of the legal proceedings affecting Ripple and XRP.
Ripple’s Response and Future Actions
Following the judgment, Ripple’s Chief Legal Officer, Stuart Alderoty, expressed on social media platform X that the ball is back in Ripple’s court. He highlighted two paths forward: either to drop their appeal concerning past institutional sales or to proceed with it. Alderoty reassured that XRP’s status as a non-security is not questioned, signaling stability for stakeholders.
Expert Insight on the Legal Stalemate
Legal expert Fred Rispoli commented on the situation, noting that the injunction would unlikely affect XRP’s position in secondary markets or hinder any upcoming ETF filings seeking SEC approval. Rispoli also debated the SEC’s power to grant necessary exemptions to Ripple, which could potentially ease the injunction’s constraints.
Market Analysts Remain Hopeful
Despite the setback, market sentiment about XRP’s future remains optimistic. Analyst CryptoBullet pointed out that XRP’s recent chart patterns mirror those seen in 2017, suggesting a potential breakout ahead. He predicted that XRP could surge to new highs between $4.50 and $5.40.
Currently, XRP has fallen back to $2.08, a critical support level for investors expecting a recovery. Over the past 24 hours, XRP has seen a 4.4% decline, with a 10% drop over the last month. According to CoinGecko, XRP is still 38% below its peak price of $3.40.
Looking Ahead: Ripple and XRP’s Path Forward
As the legal proceedings evolve, Ripple’s strategic decisions will be crucial in shaping its future and that of its cryptocurrency. Stakeholders and investors are closely monitoring the situation, hopeful for a favorable outcome that could bolster XRP’s market position. For more detailed insights into the cryptocurrency market, visit Binance.
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