The XRP price recently experienced a significant rally following the summary judgment in the legal battle between Ripple and the Securities and Exchange Commission (SEC). While the price temporarily rose by almost 100% on the day of the decision, it later entered a consolidation phase. However, with multiple positive news surrounding Ripple, there is a potential for the price to break out of this consolidation phase.
After the partial victory in the legal battle, Ripple received support from various lawyers and both Republican and Democratic US politicians. Additionally, Ripple’s Chief Legal Officer, Stuart Alderoty, announced that US financial institutions may soon be able to utilize XRP for cross-border payments. These developments have contributed to the positive sentiment surrounding Ripple and its potential for growth.
The legal victory also had a significant impact on US politics, particularly in the crypto sector. Ron Hammond, Director of Government Relations at Blockchain Association, acknowledged the impact of Ripple’s victory on US crypto policy, stating that it has weakened the SEC’s arguments. This shift in perspective from US Democrats, who are the ruling party, could potentially lead to comprehensive crypto legislation and influence the SEC under Chairman Gary Gensler. Avoiding an appeal by the SEC would be beneficial for the XRP price.
Prominent figures within the Democratic Party, such as US Representative Ritchie Torres, publicly applauded the decision, highlighting a changing perspective towards digital assets and adding credibility to Ripple’s cause. Furthermore, Caroline Pham, one of the Commissioners of the Commodities Futures Trading Commission, believes Ripple’s legal triumph has paved the way for regulatory clarity in the United States.
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The order for a settlement conference by Judge Sarah Netburn, along with her recommendation to schedule it 6-8 weeks in advance, has generated speculation about a potential settlement between Ripple and the SEC in the coming weeks. A successful settlement would not only conclude the court case but also eliminate the possibility of an appeal by the SEC, providing further support to XRP’s price prospects.
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 cross-border payments, further reinforces the potential for XRP’s growth. These positive developments create a favorable outlook for Ripple and contribute to the price momentum.
From a technical perspective, the XRP price also demonstrates a bullish trend. Following the rejection at the 38.2% Fibonacci retracement level, the price corrected to the 23.6% Fibonacci retracement level at $0.68. Here, the XRP bulls stepped in, indicating strong support. On shorter time frames, such as the 1-hour chart, XRP is back in a clear uptrend since Monday. Although it faced resistance at the $0.82 level initially, a breakout above this level could lead to a fast-paced rally towards the 38.2% Fibonacci retracement level at $0.93. Further resistance is anticipated at $1.13.
In conclusion, the XRP price has experienced significant positive momentum following the summary judgment in the legal battle between Ripple and the SEC. The support Ripple has gained from lawyers, politicians, and regulatory bodies, as well as the potential for a settlement with the SEC, has contributed to a favorable outlook for the price. Additionally, the technical analysis suggests a bullish trend for XRP. However, it is important to monitor the market and news developments to assess the sustainability of this momentum.
