The ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) continues to capture significant attention. With talks of a potential settlement gaining traction, the case’s outcome could have far-reaching implications for Ripple, XRP, and the broader cryptocurrency landscape.
The Possibility of a Settlement
Former SEC enforcement lawyer Marc Fagel has raised the possibility of a settlement, particularly with the anticipated changes in the SEC leadership. The incoming administration, alongside Paul Atkins as the new SEC Chair, might choose not to pursue an appeal, potentially bringing much-needed regulatory clarity to Ripple and XRP. Such developments could significantly boost their prospects.
As the new pro-crypto government sets a bullish scenario for XRP, the easing regulations might pave the way for a price breakout, provided Ripple can navigate the SEC’s regulatory challenges successfully.
Rumors and Market Speculations
Amidst the legal proceedings, rumors are swirling about Ripple’s plans to launch its stablecoin this month, potentially followed by an Initial Public Offering (IPO) later this year. These strategic moves are aimed at maximizing adoption in the volatile crypto market. However, the question remains: will these efforts propel XRP to new heights?
Current Status of the Ripple vs. SEC Case
According to Marc Fagel, both Ripple and the SEC have appealed parts of the case they lost, which has left a $125 million penalty for Ripple in suspension. Fagel suggests that the new SEC leadership might prioritize a resolution based on Judge Analisa Torres’s previous ruling. However, under Gary Gensler’s leadership, the SEC is expected to file its appeal by January 15.
Pro-XRP attorney Jeremy Hogan forecasts that the case might conclude by April or May 2025, citing potential procedural delays. Ripple CEO Brad Garlinghouse has been vocal about the SEC’s actions, critiquing them for stifling business opportunities in the U.S. Despite this, he notes recent progress attributed to the “Trump effect,” highlighting Ripple’s new deals and expanded workforce in the U.S. Analysts speculate that a settlement could pave the way for an XRP ETF approval, potentially leading to a significant price rally.
SEC’s Stance and XRP Investor Sentiment
Despite optimistic forecasts, there remains a possibility that the SEC may choose not to drop the case, as doing so might tarnish its reputation. The appointment of SEC’s chief litigation counsel, Jorge Tenreiro, suggests that the SEC might prolong the litigation. Nevertheless, investors maintain a bullish outlook on XRP’s price trajectory.
XRP Technical Outlook
On the technical front, crypto analyst Ali Martinez observes a bullish pattern forming in XRP, indicating a potential massive breakout. XRP is currently trading within a large bull pennant—a consolidation phase that often precedes a sharp upward move. Martinez predicts a drop to the $2.05 support level, followed by a 436% rally to a target of $11, contingent upon breaking the $2.73 resistance level.
Currently, XRP is trading at $2.42, undergoing consolidation as it prepares for its next significant move. Analysts like CrediBULL Crypto anticipate short-term consolidation within the current range, followed by a breakout to new all-time highs. The synergy of favorable legal developments and bullish technical patterns could propel XRP’s price into double digits, reminiscent of its previous 400% surge after Trump’s re-election.
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