XRP Price At Risk? SEC Chair’s Congressional Testimony Fuels Ripple’s Legal Battle

The cryptocurrency sector, notably Ripple Labs, has been embroiled in a situation of concern and uncertainty following a contentious change between the US Securities and Alternate Fee’s (SEC) chair, Gary Gensler, and the Home Monetary Companies Committee in Congress which might have an effect on the XRP worth. 

Regardless of Ripple’s partial legal victory towards the SEC, Gensler’s stance stays unchanged, as he emphasised the regulatory physique’s dedication to pursue an interlocutory enchantment within the ongoing case. This has raised additional questions and apprehension inside the business.

Congressman Highlights Ripple Case’s Far-From-Over Standing

Through the listening to, Congressman Stephen F. Lynch expressed his concern concerning the potential sample whereby court docket battles grow to be the norm to find out the classification of particular person tokens as securities. 

Whereas Gensler didn’t reply instantly, he talked about the SEC’s submitting for an interlocutory enchantment, highlighting the regulator’s intent to proceed the authorized battle. Lynch acknowledged that the case is much from over.

On August 17, Decide Torres granted the SEC’s request to file an interlocutory enchantment, granting the regulatory physique a possibility to current a compelling case to the Second Circuit. 

Nevertheless, it’s necessary to notice that this permission solely permits the SEC to file the movement for an interlocutory enchantment, presenting a big opening for the regulator to problem the earlier ruling and search a unique final result.

These current developments, as highlighted by Congressman Lynch, point out that the continuing Ripple case could take appreciable time to resolve. 

Consequently, XRP is more likely to stay stagnant, trapped in a consolidation part, or doubtlessly retracing past its present ranges. This might doubtlessly push the cryptocurrency to pursue one other annual low, extending past the $0.4225 mark reached on August 17.

XRP Value Evaluation Factors To Potential Macro Uptrend

Regardless of the authorized battles and the uncertainty surrounding the present state of the crypto market, some indicators would possibly level to a unique situation, the place XRP might comply with a macro uptrend. 

Technical evaluation highlights a pattern resembling the final market cycle, which consists of 5 phases: rise, crash, retrace, reaccumulation, and eventual breakout.

Drawing parallels to earlier cycles, many cash have skilled explosive progress past their earlier all-time highs after the reaccumulation part. 

For example, Bitcoin went by its reaccumulation part in the course of the COVID-19 pandemic. Nonetheless, as a result of ongoing lawsuit, XRP has entered a extra extended reaccumulation part within the type of an Elliott wave triangle, just like the earlier cycle. 

At the moment, the market is in part E, which suggests a possible retracement upwards, adopted by one other dip to decrease ranges. Ultimately, there may be anticipation for a breakout from this huge triangle, resulting in a brand new all-time excessive more likely to happen subsequent yr or the yr after.

Whereas some argue that the XRP worth destiny relies on Bitcoin’s efficiency, it’s price noting that when evaluating XRP to BTC, it is usually inside an accumulation vary and displays a bullish outlook. From this angle, XRP is anticipated to outperform different various cash considerably.

Nevertheless, for the XRP worth to maintain an prolonged uptrend within the close to time period, it should overcome vital resistance ranges that pose potential challenges. Within the instant time-frame, XRP faces a resistance at $0.5132, adopted by two extra formidable limitations, that are anticipated to be notably difficult within the coming weeks.

XRP’s 50-day and 200-day Shifting Averages (MAs) are at present positioned at $0.5194 and $0.5318, respectively. These MAs, as soon as thought of dependable assist ranges, have failed to carry, necessitating a big catalyst for XRP to surpass them. 

That is evident within the chart, depicting the partial victory on July 13, when XRP surged above each MAs. Nevertheless, since August, XRP has been buying and selling beneath them.

Featured picture from Shutterstock, chart from TradingView.com