Rescinding the guidance would be another boost for XRP and the broader crypto market. This guidance provided the SEC with the basis to target crypto-related firms.
SEC vs. Ripple: Appeals, Cross-Appeals, and Settlements
The review may facilitate an appeal withdrawal in the Ripple case. Ripple CEO Brad Garlinghouse recently announced that the SEC would withdraw its appeal challenging the Programmatic Sales of XRP ruling. However, until now, the SEC has remained silent on its appeal plans.
Following this, Ripple announced its cross-appeal withdrawal and settlement terms stemming from Judge Analisa Torres’ Final Judgment. Ripple Chief Legal Officer Stuart Alderoty shared details of the settlement. Both parties agreed to remove the injunction prohibiting XRP sales to institutional investors and a lower penalty of $50 million. However, final settlement terms are likely contingent on the SEC formally ending its appeal and Ripple withdrawing its cross-appeal.
XRP Price Outlook Hinges on SEC Appeal and ETF Progress
XRP’s short-term trajectory hinges on the SEC’s appeal withdrawal, the Final Judgment, and the potential approval of XRP-spot ETFs.
XRP Price Scenarios:
- Bullish Scenario: An official SEC appeal withdrawal, a favorable settlement, and growing demand for Ripple products could drive XRP toward its all-time high of $3.5505. Approval of XRP-spot ETFs could further fuel institutional demand, pushing prices toward $5.
- Bearish Scenario: Delays to an appeal withdrawal, uncertainty over the settlement, renewed cross-appeal action, or rejection of XRP-spot ETFs could weigh on sentiment, risking a drop below the $1.50 level.
XRP Price Action
Daily Chart
Despite a three-day winning streak, XRP remains below the 50-day Exponential Moving Average (EMA), sending bearish price signals. Nonetheless, XRP still trades above the 200-day EMA, offering long-term support.
A move above the 50-day EMA could open the door to the March 19 high of $2.5925. If XRP makes a decisive move above $2.5925, the bulls could target the January 16 high of $3.3999 next.
Conversely, an XRP drop below $2 and the 200-day EMA would bring the $1.9299 support level into play.
With a 14-day Relative Strength Index (RSI) reading of 43.12, XRP could fall below the 200-day EMA before entering oversold territory (RSI below 30).
