XRP, at the center of a high-stakes legal battle with significant implications for the industry, has taken the lead in the recent surge in crypto prices amid growing speculation that Ripple, the blockchain payments company behind XRP, may be close to a settlement with US regulators.
Ripple-SEC Legal Dispute Continues
Over the past week, XRP has experienced a substantial rally of over 40%, reaching a current trading price of $0.6161. This marks the highest level XRP has reached since April, while the overall market has seen a more modest increase of around 12% during the same period.
The legal dispute stems from a lawsuit filed by the US Securities and Exchange Commission (SEC) against Ripple Labs in 2020. The SEC alleged that Ripple violated its rules by conducting an “unregistered securities offering” through the sale of XRP.
In a blow to the SEC, a US District Judge ruled in July last year that the sale of XRP to retail investors on exchanges did not constitute investment contracts.
Adding fuel to the speculation is a “closed meeting” on the SEC’s website scheduled for July 18.. Although an SEC spokesperson declined to comment, investors and traders interpret this as a potential development in the status of XRP.
However, former SEC lawyer Marc Fagel dismissed rumors of an imminent settlement between the SEC and Ripple, stating that closed-door meetings of this nature have been routine since the lawsuit was filed.
Pro-XRP lawyer Fred Rispoli also weighed in, expressing skepticism about the likelihood of a pre-judgment settlement. While negotiations on outstanding arguments are possible, Rispoli added that a resolution before the court’s ruling seems unlikely.
Rispoli speculates that Judge Analisa Torres will order a penalty of less than $25 million and no disgorgement against Ripple, contrasting with the SEC’s request for a $102.6 million fine. Ripple, on the other hand, has proposed a penalty of $10 million.
XRP Price Breakout, Analyst Anticipates Tremendous Gains
With the XRP price hitting a 4-month high after a sharp downtrend, crypto analyst Dark Defender has stated that the token could be on its way to explosive gains if one key level is breached during the current rally.
In a social media post, Dark Defender highlighted that XRP has entered the qualification mode by rebounding from the last “frontier” at $0.3917.
According to Dark Defender, if XRP manages to rise above $0.6649, it could embark on a journey towards the $18 to $36 price range, meaning a 2810% jump to the former and a potential 5740% rise to the latter.
In addition, the token has crossed its 200-day exponential moving average (EMA), marked by the yellow line on the daily XRP/USD chart, which was previously a notable resistance wall.
If consolidation above its 200-day EMA occurs, further price appreciation could be seen as trading above it has always resulted in notable gains for the XRP price, as seen in the chart below.
Featured image from DALL-E, chart from TradingView.com