XRP Drops Amidst Growing Legal Uncertainty for Ripple
Investor concerns surrounding the SEC’s legal battle with Ripple have caused a significant drop in the value of XRP this weekend. As the outcome of the crypto giant’s court case looms, the future of XRP remains uncertain. On Sunday, June 23, XRP experienced a 1.42% decline, following a 0.55% loss on Saturday, June 22, ending the week down 1.92% at $0.4797. This decline was part of a broader negative trend in the crypto market, with the total crypto market cap falling by 1.73% to $2.251 trillion on Sunday.
Investors are awaiting the pending court rulings from pivotal crypto cases that could potentially impact the SEC’s influence in the US digital asset space. The court ruling on the penalty for Ripple’s breach of US securities laws could be delivered at any time. Ripple faces a potential financial penalty ranging from $10 million to $2 billion. Additionally, the SEC has requested an injunction prohibiting XRP sales to institutional investors, which could hamper Ripple’s plans to expand in the US.
Read Also: Ripple Scores Major Victory in XRP Lawsuit: Class Action Claims Dismissed
California Court Trial
The outcome of the Californian trial may be more significant than the SEC vs. Ripple case. If the court finds that XRP sales failed the Howey test, it could provide grounds for the SEC to appeal against the ruling allowing the Programmatic Sales of XRP.
Overview of XRP Future Outlook
Looking ahead, XRP could face increased selling pressure if the SEC files an appeal, and it may continue to face resistance at the $0.50 level until there is more clarity on the SEC’s plans. Given the ongoing legal battles, XRP investors should prepare for continued volatility. Stay tuned for further updates as the court rulings unfold.
XRP Market Trend
On the daily chart, XRP is below the 50-day and 200-day EMAs, indicating a bearish price trend. A move above the trend lines would support an upward move, while a break below the $0.4750 handle could lead to further declines.
With a 14-day RSI reading of 39.22, XRP could fall to the $0.45 level before entering oversold territory. SEC activity and the SEC vs. crypto case-related developments should be carefully considered by investors.
Read Also: XRP Poised for Reversal Against Bitcoin, Analyst Predicts
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Meet Daniel Abang: Crypto guru, content creator, and analyst. With a deep understanding of blockchain, he simplifies complex concepts, guiding audiences through the ever-changing crypto landscape. Trusted for his insightful analysis, Daniel is the go-to source for staying informed and empowered in the world of cryptocurrency.
