Apart from the recent crypto market happenings, such as high-profile bankruptcy filings and the subsequent market downturn, a section of the industry focus has been on the ongoing case pitting Ripple against the U.S. Securities Exchange Commission (SEC).
Indeed, with speculations that the involved parties will likely settle the matter, there have been rumors the case is now nearing a conclusion. Certainly, the outcome of the case will influence the general cryptocurrency market. The ruling will probably define which digital assets can be considered a security under United States laws.
As things stand, both parties have made final bids hoping for a favourable ruling from presiding judge Analisa Torres. In the final briefs, Ripple argued that the regulator aims to have a ruling declaring XRP was an investment contract but “without any contract, without any investor rights, and without any issuer obligations.”
As per Ripple’s general counsel, Stuart Alderoty, the final submission want the court to rule in favour of the company. In a tweet on December 3, the attorney pointed out that the company was proud of the defence it has mounted on “behalf of the entire crypto industry.
According to Ripple, the SEC has failed to prove the XRP sale between 2013 and 2020 was an offer of an “investment contract” and, therefore a security under federal security laws. Therefore, the blockchain firm stated that “the court should grant Defendant’s Motion and should deny the SEC’s Motion.”
Impact on XRP
As the case progresses, investors continue to monitor the value of XRP and how the outcome will impact the seventh-ranked cryptocurrency by market capitalization. It is worth noting that XRP has rallied in the past, with the court making minor rulings in favour of Ripple.
For instance, the token rallied after the judge accepted supportive briefs from companies utilizing the XRP technology and cryptocurrency industry groups.
Ripple recorded another win after the court overruled the regulator’s attempt to withhold the documents relating to former Division Director William Hinman. The documents entailed a speech by Hinman where he said Ethereum (ETH) were securities.
Interestingly, despite Ripple’s legal troubles, investors continue to back the company, elevating it to gain a valuation of $15 billion as of November 2022. In this line, the valuation places Ripple in the tenth slot among the United States’ most valued startups and the only crypto firm on the list.
XRP price analysis
It is worth noting that the minor wins have helped XRP sustain a bullish momentum in 2022 despite the prevailing market conditions. By press time, XRP was trading at $0.39, recording losses of about 1.5% in the last 24 hours.
Overall, XRP has been consolidating recently while trading below the resistance position of $0.40. Notably, based on the current price level, the asset is staring at a possible breakout if it surges past the $0.41 level.
On the flip side, a drop below the $0.38 position could invalidate the bullish projection for XRP. Furthermore, as the token targets the $0.40 support level, XRP appeared unmoved by developments like delisting the asset from the Coinbase Wallet.
XRP technical analysis
In the meantime, the XRP technical analysis is bearish, with a summary of the daily gauges supporting the ‘sell’ sentiment at 11, while moving averages are for a ‘strong sell’ at 11.
Finally, by factoring various technical indicators, a previous Finbold report indicated that the asset would likely trade at $0.427 on December 31, 2022.
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