In the ever-volatile world of cryptocurrency, XRP had a remarkable surge of 8.14% on Monday, continuing its impressive run following a 7.41% rally on Sunday.
The XRP community is abuzz with optimism as speculation about the outcome of the SEC v Ripple case reached new heights.
This surge in demand for XRP is being driven by expectations of a favorable settlement between Ripple and the U.S. Securities and Exchange Commission (SEC). Here’s a closer look at the latest developments that have sent shockwaves through the crypto market.
The Ripple-SEC Battle Continues:
Ripple, a blockchain company known for its digital payment protocol and XRP cryptocurrency, has been locked in a legal battle with the SEC over whether XRP should be classified as a security.
On Sunday, attorney and partner at Hogan & Hogan, Jeremy Hogan, shared his optimistic outlook on Ripple’s chances of a favorable settlement.
Hogan’s assessment aligns with the views of amicus curiae attorney John E. Deaton, who previously gave Ripple a 90-10 chance of a favorable settlement.
Deaton even mentioned the possibility of Ripple facing a relatively modest $20 million penalty, which he considered a 99.9% victory for Ripple.
Speculation about the settlement’s outcome has been growing in recent sessions, leaving the crypto community eagerly awaiting updates from both Ripple and the SEC regarding the progress toward a briefing schedule.
It’s worth noting that the two parties have until November 9 to jointly propose a briefing schedule to the court. If they fail to reach an agreement, the court will set a contested briefing schedule, focusing on remedies for the remaining charges.
The uncertainty surrounding the briefing schedule could test buyer appetite for XRP in the run-up to the deadline.
SEC Chair Gary Gensler’s Controversial Statements:
On Monday, Ripple’s Chief Legal Officer, Stuart Alderoty, responded to a speech delivered by SEC Chair Gary Gensler on October 2
5. Alderoty criticized Gensler’s assertion that a crypto project retaining a lawyer could be considered a security, a statement he deemed legally incorrect and lacking common sense.
Gensler’s speech has attracted considerable attention in the crypto community as he continued to categorize cryptocurrencies as securities, despite recent setbacks for the SEC in court.
John E. Deaton weighed in on Stuart Alderoty’s comments, highlighting his disagreement with Gensler’s statements. The legal community and the crypto industry remain divided on whether Gensler’s views align with current laws and regulations.
XRP Price Action:
XRP’s price action remains a subject of great interest for investors and traders. On the daily chart, XRP is currently trading above both the 50-day and 200-day Exponential Moving Averages (EMAs).
Should XRP continue its upward trajectory, a move to the Monday high of $0.7328 could pave the way for a challenge of the $0.7812 resistance level.
However, a decline below the $0.7047 support level may shift the focus to levels below $0.65, particularly the $0.6354 support level.
The Relative Strength Index (RSI) with a 14-day reading of 86.03 suggests that XRP is currently in overbought territory, indicating potential intensification of selling pressure, especially in light of ongoing uncertainty surrounding settlement talks.
In the shorter-term perspective of the 4-hour chart, XRP continues to trade above the 50-day and 200-day EMAs. A move towards $0.75 could set the stage for a challenge of the $0.7812 resistance level.
Conversely, a break below the $0.7047 support level may put $0.65 and the $0.6354 support level in the spotlight.
The 4-hour RSI reading of 81.43 further underscores the notion that XRP is in overbought territory, potentially leading to increased selling pressure in the absence of favorable settlement news.
XRP’s recent price surge and the ongoing legal battle with the SEC have created a whirlwind of speculation and optimism in the crypto community.
As the November 9 deadline for jointly proposing a briefing schedule approaches, the fate of XRP remains uncertain. Investors and enthusiasts eagerly await updates from Ripple and the SEC to gauge the potential impact on XRP’s value.
The controversial statements from SEC Chair Gary Gensler continue to fuel debates and discussions within the legal and crypto communities, adding an extra layer of intrigue to the XRP saga.