XRP has managed to carve out a dominant position in a high-demand niche for itself. In spite of that success, the longstanding lawsuit between Ripple and the Securities and Exchange Commission (SEC) has been a stone around the cryptocurrency’s neck.
While the victory of Donald Trump, largely seen as the pro-crypto candidate of the 2024 election, was initially taken as a bullish catalyst. The SEC has, indeed, dropped several cases since Gary Gensler’s exit.
Most notably, under the tenure of acting chair Mark Uyeda, the SEC has dropped its lawsuit against Coinbase. However, the regulatory body’s legal battle with Ripple has yet to be concluded. Despite widespread optimism and numerous rumors, the latest official developments in the case are months old.
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Whereas most market commentators seem certain the matter will soon be done with, renowned pro-crypto lawyer Bill Morgan seems to disagree, per a March 18 X post. Morgan expressed concern that continuing uncertainty about the case could eventually exert an increasingly negative effect on XRP prices.
“As the weeks and months pass, I increasingly wonder whether despite all the rumours of a settlement, the continuing uncertainty about the end or continuation of SEC v Ripple appeal will eventually increasingly exert a negative pressure on XRP price.”
It’s hard to argue that a delay in the case’s resolution would have negative consequences for XRP. Rather than giving an outright appraisal of whether or not such a development is likely, let’s take a look at the big picture, and our readers can draw conclusions for themselves.
XRP adoption and price action analysis
First, let’s deal with price action. The price of XRP has increased by 5.71% over the past week, bringing year-to-date (YTD) returns up to 9.44%. This is a continuation of an existing trend where the token outperforms the cryptocurrency market at large in general and leading assets such as Bitcoin (BTC) in particular, which is down 10.27% on a YTD basis.
Therefore, on the whole, it’s hard to make a case that sentiment has turned bearish. Institutional investors certainly seem to be positioning themselves as if the conclusion to the legal battle is coming to a close.
Large asset managers, such as Franklin Templeton, have recently filed documentation for XRP exchange-traded funds (ETFs), signaling a strong degree of optimism on the side of Wall Street. Retail adoption is also on the uptake, as the number of XRP addresses has reached a record high of 7 million.
Taking a more short-term view, investors and traders should also consider supply and demand dynamics. Ripple has moved roughly $465 million worth of March’s sell reserve — and while that would normally put downward pressure on prices, thus far, XRP whales have proven willing to absorb the additional supply.
Meanwhile, technical analysts have outlined a case for a surge to price levels as high as $15. For the time being, the price of XRP has moved away from the crucial $2 support level, indicating that the bulls are currently dominating the narrative.
Rumors point to a speedy conclusion to the Ripple v. SEC case
So, what about the actual case? While it should be taken with a grain of salt, the latest significant ‘scoop’ regarding the Ripple v. SEC case came from prominent Fox Business journalist Eleanor Terrett.
In a March 12 X post, she claimed that two “well-placed sources” conveyed that the delay that has been seen thus far is actually the result of Ripple’s own legal team negotiating for more favorable terms regarding an earlier district court ruling made in August.
So, why would Ripple make such a move? It’s quite simple — that August ruling also included a permanent injunction that prevents the sale of XRP to institutional investors. Such an order presents a major roadblock for XRP’s further growth — so it makes sense that Ripple would push for its removal.
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