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Investors’ confidence in XRP is now in the hands of the crypto market as they wait for verdicts in the legal dispute between Ripple and the Securities and Exchange Commission (SEC).
XRP has been on an upward trend since the beginning of 2023, but there is still a chance that it may retrace its steps to levels lower than those seen in the past. The bearish trend will be reinstated if XRP prices fall below the $0.40 support level. This could cause the price of XRP to drop to $0.36.
Conversely, there is a barrier that prevents the price from continuing to rise, and that threshold is located at $0.42. If buyers are successful in breaking past the resistance level, however, XRP will surge to a high of $0.45. Furthermore, as XRP attempts to create its fourth consecutive weekly green candle, the relative strength index (RSI) continues to show positive divergence with the trend line.
As things stand, XRP is changing hands at $0.4072, down 6.07% in the last 24 hours and down a further 10.17% across the previous seven days.
SEC v. Ripple
Given the SEC’s stance in SEC v. Ripple, the papers relating to William Hinman’s speech might determine which regulatory entity rules the digital asset area. A judgment in favor of the Defendants might require the SEC to negotiate a settlement or risk the disclosure of speech-related materials.
Bitcoin (BTC) and Ethereum (ETH) are not securities, according to William Hinman, a former director of the SEC’s Division of Corporation Finance. The relationship of Hinman to Simpson Thacher, a firm that promotes Enterprise Ethereum, was the source of most of the controversy surrounding the lecture. Once Hinman finished his time with the SEC, he returned to Simpson Thacher.
At least six efforts had been made by the SEC to claim attorney-client privilege over the papers pertaining to the speech before the redaction request was filed. CEO of Ripple, Brad Garlinghouse, commented last week on the Hinman papers:
“When those come to light, I think you will see more kind of like, how is it possible for the SEC to decide to bring a case against Ripple given what they were saying within their own walls.”
Investment Banker Declarant
On January 25, the case took an unexpected turn after the filing of a request by Ripple in opposition to a prior filing by “Investment Banker Declarant,” who wishes to maintain the confidentiality of his information, was revealed.
Investors need to stay current on developments regarding the SEC’s lawsuit against Ripple. In the event that there are no updates, the direction of the cryptocurrency market as a whole will likely be the determining factor.
The updates to FTX and Genesis will continue to be major drivers. On January 27, attention will be focused on economic statistics from the United States. The primary areas of attention are inflation, personal spending, and personal income.
The NASDAQ Index and the crypto market would suffer if both consumer expenditure and inflation increased.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.