Rescinding the guidance issued by the SEC would serve as a significant boost not only for XRP but also for the wider cryptocurrency market. Historically, this guidance has provided the SEC with the necessary foundation to pursue actions against firms involved in crypto-related activities. Therefore, revoking this guidance could lead to diminished regulatory constraints and uncertainties for those firms, fostering a more conducive environment for innovation and growth within the cryptocurrency sector.

SEC vs. Ripple: Appeals, Cross-Appeals, and Settlements

The ongoing review process could potentially facilitate the withdrawal of appeals in the Ripple case. Recently, Ripple’s CEO, Brad Garlinghouse, made a hopeful announcement indicating that the SEC intends to withdraw its appeal against the ruling on Programmatic Sales of XRP. Despite this optimistic development, the SEC has notably remained silent regarding its future plans about the appeal. This silence leaves uncertainty hanging in the balance as the legal proceedings continue.

In a follow-up to this development, Ripple announced its own withdrawal of the cross-appeal, alongside revealing the terms of a prospective settlement stemming from Judge Analisa Torres’ Final Judgment. Ripple’s Chief legal Officer, Stuart Alderoty, offered insights into the settlement, indicating that both parties have come to an agreement to lift the injunction restricting XRP sales to institutional investors. Additionally, there is a proposed reduction in penalties to $50 million. Nonetheless, it is important to note that the finalization of these settlement terms likely hinges on the SEC formally concluding its appeal and Ripple officially withdrawing its cross-appeal.

XRP Price Outlook Hinges on SEC Appeal and ETF Progress

The future trajectory of XRP’s price is intricately tied to the potential withdrawal of the SEC’s appeal, the implications of the Final Judgment, and the anticipated approval of XRP spot ETFs. These factors collectively have significant implications for market sentiment and price movements.

XRP Price Scenarios:

• Bullish Scenario: An official withdrawal of the SEC’s appeal, favorable settlement negotiations, and an increase in demand for Ripple’s offerings could propel XRP towards its previous all-time high of $3.5505. Furthermore, the approval of XRP spot ETFs may significantly heighten institutional demand, potentially pushing prices toward the $5 mark.
• Bearish Scenario: Conversely, any delays in withdrawing the appeal, questions surrounding the settlement, renewed actions related to the cross-appeal, or any negative outcomes regarding XRP spot ETF approvals could dampen market sentiment and risk driving XRP prices below the critical $1.50 support level.

XRP Price Action

Daily Chart

Despite experiencing a three-day winning streak, XRP continues to remain below the 50-day Exponential Moving Average (EMA), which may indicate bearish trends within the price movement. Nonetheless, it is important to highlight that XRP trades above the 200-day EMA, which provides a crucial support level for long-term investors.

If XRP manages to break above the 50-day EMA, this could pave the way for a test of the March 19 high of $2.5925. A decisive move beyond this level could attract bullish momentum, enabling investors to set their sights on the January 16 high of $3.3999.

On the other hand, if XRP falls below the $2 mark and the 200-day EMA, this would bring the $1.9299 support level back into focus, potentially signaling deeper troubles for investors.

The current 14-day Relative Strength Index (RSI) stands at 43.12, suggesting that XRP could decline further, potentially falling below the 200-day EMA before entering the oversold territory (RSI below 30). This movement may present challenges but could also create buying opportunities for astute investors discerning the long-term viability of XRP.

In light of these developments, utilizing tools such as the AI legalese decoder could provide valuable insights for investors and companies involved in the cryptocurrency industry. This innovative platform can help decode complex legal jargon and ensure that all parties understand their rights and obligations under existing laws and regulations. By clarifying legal terms and processes, stakeholders can make informed decisions in this dynamic market, particularly as the landscape continues to evolve amidst ongoing SEC litigation and potential regulatory changes.