Ripple's partial victory against the US SEC is tainted, here's where XRP price is headed
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- XRP price hovers around the $0.70 level, down 28% from its recent top of $0.965.
- The fate of the remittance token has been pulled from safety after Judge Jed Rakoff rejected the distinction made in the Ripple case.
- Investors can expect a 25% crash in the near term if the SEC decides to appeal Judge Torres’ decision.
Ripple landed a historic partial win against US financial regulator, Securities and Exchange Commission (SEC). The outcome of the SEC vs. Ripple lawsuit ensured that the community of XRP holders is in the safe zone, with regards to their trades across exchange platforms. The recent proceedings in the SEC vs. Terraform Labs case raised questions on the SEC vs. Ripple victory.
Due to the developments over the last 24 hours, XRP price could easily drop and undo last month's gains if the Securities & Exchange Commission (SEC) decides to appeal the ruling in Ripple’s lawsuit.
XRP price and the worst-case scenario
In the event that the SEC appeals Judge Analisa Torres’ decision on the XRP token, its holders could be in trouble. XRP price is down 28% from the SEC vs. Ripple lawsuit decision-based rally that propelled it by 100% to $0.965 on July 13.
Also read: XRP retail holders made biggest winners from Torres' decision, technology policy expert says
Since then, the remittance token continues to consolidate between the $0.965 and $0.666 levels. The recent rug pull of BALD meme coin combined with the Curve Platform’s hack was soon followed by a nearly two percent drop in Bitcoin price.
A rug pull is when the developer in charge of a project pulls all the liquidity from the decentralized exchange, causing it to freefall to zero. Regardless, the recent market developments have had very little effect on Bitcoin and other cryptocurrencies' prices. However, if the ruling in the SEC vs. Ripple lawsuit is called into question formally, then XRP price could break out of the range and easily shed 25%.
Such a move would knock XRP price to the next stable support level of $0.520. In a dire case scenario, the altcoin could dive as low as $0.392 and collect sell-side liquidity resting below equal lows.
XRP/USDT 1-day chart
On the other hand, if the SEC does not appeal or the appeal gets rejected, XRP price could continue its rangebound movement. In a conservative scenario, the remittance token could revisit the range’s midpoint at $0.761.
Experts believe Ripple ruling is in trouble after this court decision in the SEC v. Terraform Labs case
Judge Jed Rakoff rejected Judge Analisa Torres' ruling from July 13, in which Torres declares that Ripple did not violate securities laws by selling XRP on crypto exchanges. Experts and attorneys on crypto Twitter analyzed Judge Rakoff's comments and stated that the Ripple ruling is in trouble. In the SEC v. Terraform Labs case, Judge Rakoff has specifically rejected Judge Torres' application of the Howey test and argued that the test makes no distincting between secondary market purchases and institutional purchases of XRP.
Judge Torres' ruling and Ripple's partial victory are likely in jeopardy, it remains to be seen whether the SEC appeals to the second circuit and whether Judge Torres' ruling is overturned.
