The XRP price recorded a stunning rally after district judge Analisa Torres published the summary judgment in the legal battle between Ripple and the Securities and Exchange Commission (SEC). But after rising by almost 100 % temporarily on the day of the decision, the XRP price saw an initial consolidation. Now, price could break out of this consolidation phase, triggered by a multitude of positive news.
After the partial victory in the legal battle, the news piled up for Ripple. The fintech company received backing from numerous lawyers as well as Republican and Democratic US politicians. In addition, Ripple Chief Legal Officer (CLO) Stuart Alderoty announced that US financial institutions could soon rely on XRP for cross-border payments.
Why Is XRP Up Today?
Following the ruling, a seismic shift in US politics towards crypto occurred. Ron Hammond, Director of Government Relations at Blockchain Association, highlighted the impact of Ripple’s legal victory on US crypto policy yesterday. He explained, “While the case wasn’t a full ‘win’ for Ripple, it has significantly weakened the SEC’s arguments.” Democrats want to take action now, after years of praising the SEC and its enforcement actions.
This is a positive signal for Ripple, as the US Democrats, as the ruling party, could influence the SEC under Chairman Gary Gensler, possibly preventing an appeal by getting a comprehensive crypto legislation rolling in the US Congress. An appeal could be a potential damper for the XRP price.
Remarkably, US Representative Ritchie Torres, a prominent figure in the Democratic Party, applauded the decision, stating, “Digital assets aren’t securities in themselves but can be part of investment contracts, which are securities.” This significant endorsement by a lawmaker showcases a shift in perspective towards digital assets, adding credibility to Ripple’s cause.
Caroline Pham, one of the five Commissioners of the Commodities Futures Trading Commission, stated after the summary judgment that Ripple’s legal triumph has paved the way for much-needed regulatory clarity in the United States.
Furthermore, Judge Sarah Netburn’s order for a settlement conference, coupled with her recommendation to schedule it 6-8 weeks in advance, has ignited anticipation of a settlement between Ripple and the SEC within the coming weeks. If successful, this settlement could not only mark an end to the court case but also eliminate the possibility of an appeal by the SEC, providing a further boost to XRP’s price prospects.
Ripple’s partial victory has also led to speculation about its possible use by US banks and financial institutions. Ripple’s Chief Legal Officer, Stuart Alderoty, expressed his optimism, stating, “I think the answer to that is yes…hopefully, this quarter will generate a lot of conversations in the United States with customers, and hopefully, some of those conversations will actually turn into a real business.”
Ripple’s plans to engage in discussions with US-based financial institutions regarding the adoption of its On-Demand Liquidity (ODL) product, which utilizes XRP for seamless cross-border payments, further reinforces the potential for XRP. The slew of good news for Ripple is certainly a driving factor for the price.
XRP Price Analysis
From a technical perspective, the picture for the XRP price is equally bullish. After the price was rejected at the 38.2% Fibonacci retracement level last Thursday, the day of the ruling, the overheated market corrected to the 23.6% Fibonacci retracement level at $0.68. At this price level, the XRP bulls stepped in perfectly.
A look at the shorter time frames (1-hour chart) shows that XRP is back in a clear uptrend since Monday. In a first attempt, however, the XRP price failed at the $0.82 level. But if this resistance is breached, a fast-paced rally up to the 38.2% Fibonacci retracement level at $0.93 is likely. If this level is also shattered, greater selling pressure is only to be expected at $1.13.
Featured image from iStock, chart from TradingView.com
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