In a significant development within the cryptocurrency landscape, the Securities and Exchange Commission (SEC) has appealed the recent ruling regarding the programmatic sales of XRP. This comes on the heels of a landmark decision made by Judge Analisa Torres in July 2023, where she concluded that these sales did not meet the third prong of the Howey Test, a legal standard for determining whether an asset is considered a security.
Currently, XRP has managed to hold its ground above the $2 mark, showcasing a blend of cautious investor optimism amid ongoing legal uncertainties. However, the future remains uncertain, especially as Judge Torres could potentially reject the SEC’s second request. The complexity of this situation is heightened by the fact that this second ruling is merely indicative, limiting the parties’ ability to appeal it. Consequently, both the SEC and Ripple must navigate this landscape carefully, weighing their options on whether to proceed with appeals or seek a resolution without the prospect of a definitive settlement agreement.
XRP Price Outlook: Court Action and XRP-Spot ETF Deadline in Focus
The short-term price trajectory of XRP is intrinsically linked to updates from the Ripple case and developments surrounding the XRP-spot ETF. If Judge Torres were to grant the motion filed on June 12, it would enable Ripple and the SEC to withdraw their appeals, which could act as a catalyst for XRP’s price to surge towards its all-time high of $3.5505. Moreover, a resolution in the legal battle could pave the way for the introduction of an XRP-spot ETF—a move that many believe would invigorate the market further. With Franklin Templeton’s Franklin XRP Fund poised to hit an interim deadline on June 17, the anticipation builds, though the ongoing legal skirmishes could lead the SEC to postpone decision-making on ETF applications.
XRP Price Action
Daily Chart
Analyzing XRP’s recent trading patterns, we find that it has faced challenges, trading below the 50-day Exponential Moving Average (EMA) after experiencing a five-day losing streak. Despite this bearish trend, it remains above the 200-day EMA, indicating that the longer-term outlook may still hold some bullish potential. A breakout above the $2.2 mark could signal a rally toward the 50-day EMA, with momentum potentially driving XRP back to the May 12 high of $2.6553. In the scenario where the SEC withdraws its appeal and gives the green light for XRP-spot ETF applications, we could see XRP targeting the 2025 high of $3.3999.
Conversely, the downside risks are palpable. A breach below the 200-day EMA could expose XRP to levels below $2, with the crucial support level resting at $1.9299. The technical indicators reveal a mixed sentiment, with the 14-day Relative Strength Index (RSI) currently sitting at 42.29. This suggests that there is room for XRP to drop below $2 before entering oversold conditions, signaled by an RSI below 30.