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The ongoing legal tussle between the SEC and Ripple has raised the volatility in XRP’s pricing. As a result, XRP dropped sharply below the $0.55 level, reaching a low of $0.5222 on October 3. Investors stay worried that the SEC’s appeal could bring down XRP’s price below $0.50.
Recent trading also showed XRP under pressure, lagging behind the broader crypto market. To note, the crypto market fell slightly by 0.15% while Ripple lost 3.08%.
The SEC’s Notice of Appeal, filed on October 2, indicates their intent to challenge certain aspects of the recent rulings in the SEC v Ripple case. The SEC is particularly interested in the court’s decisions on two major issues.
First, the court denied the SEC’s request for Ripple to pay a $1.1 billion disgorgement, which the SEC sees as a significant setback. Second, the ruling on the programmatic sales of XRP, where the court found that these sales did not meet the criteria of the Howey Test, may also be challenged.
This appeal has created fresh uncertainty in the market, driving XRP downward. Investors are now watching to see whether Ripple will file a cross-appeal. Some legal experts believe Ripple has good reason to file one to protect their position in court.
Former SEC lawyers have commented on the likely appeal strategy, with many pointing to broader implications for other cryptocurrency-related cases, including those involving exchanges like Coinbase and Kraken.
Read also: Ripple Expands in UAE with New Financial Services License
XRP Faces Potential Dip Below $0.50
XRP’s price remains below both its 50-day and 200-day Exponential Moving Averages (EMAs), signaling bearish market conditions. A break below the current low of $0.5075 could push XRP’s price toward the $0.50 mark.
Technical analysts believe the $0.50 support level is crucial, as a further drop below could trigger additional selling pressure. The Relative Strength Index (RSI) reading of 36.72 suggests XRP is nearing oversold territory, increasing the chance of a continued decline.
Read also: Ripple’s Cross-Appeal May Be Delayed as SEC Fails to File Form C
As investors await the SEC’s detailed Form C filing, which will outline exactly what the agency is appealing, the price of XRP remains volatile. Ripple-related news and updates from the court case will be key factors in future price trends. Market speculation suggests that if the SEC wins its appeal on the programmatic sales ruling, XRP could fall further, possibly to around $0.40.
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