Ongoing Legal Battle and Potential Settlement
The Ripple vs. SEC lawsuit remains at the forefront of crypto news, with increasing speculation about a potential settlement on the horizon. Former SEC enforcement lawyer, Marc Fagel, has expressed the belief that a settlement is imminent, particularly with the incoming changes in the U.S. administration. The possibility of new SEC Chair Paul Atkins choosing not to pursue an appeal could offer much-needed regulatory clarity for Ripple and XRP, enhancing their prospects significantly.
The advent of a pro-crypto government scenario seems to favor XRP, as regulatory hurdles might ease, potentially leading to a price breakout if XRP can navigate the SEC’s regulatory challenges successfully. Additionally, rumors are circulating about Ripple launching its stablecoin soon, followed by an Initial Public Offering (IPO) later in the year, aiming to maximize market adoption in a volatile environment.
Current Status of the Ripple vs. SEC Case
Marc Fagel has noted that both Ripple and the SEC have appealed parts of the case they lost, which has left a $125 million penalty for Ripple pending. He suggests that the new SEC leadership might focus on resolving the case based on Judge Analisa Torres’s prior ruling. However, under Gary Gensler’s leadership, the SEC is expected to file its appeal by January 15. Pro-XRP attorney Jeremy Hogan anticipates that the case could conclude by April or May 2025, due to procedural delays in reaching a final decision.
Ripple CEO Brad Garlinghouse has criticized the SEC’s actions, which he claims have stifled business opportunities in the U.S., yet he highlighted recent progress attributed to the “Trump effect.” Ripple has signed new deals and expanded its U.S. workforce, signaling optimism for the company’s future. Analysts suggest that a settlement could pave the way for an XRP ETF approval, potentially triggering a significant price rally.
On the contrary, there is a possibility that the SEC might not drop the case to avoid a reputational loss. The appointment of SEC’s chief litigation counsel, Jorge Tenreiro, indicates that the case might be prolonged. Nevertheless, investors maintain a bullish outlook on XRP’s price.
XRP’s Technical Outlook
On the technical front, crypto analyst Ali Martinez observes XRP forming a bullish pattern that could lead to a significant breakout. Martinez highlights that XRP is trading within a large bull pennant, a consolidation phase often succeeded by a sharp upward move. He predicts that XRP might initially drop to a $2.05 support level before potentially rallying 436% to a target of $11, provided it breaks the $2.73 resistance level.
Currently trading at $2.42, XRP is in a consolidation phase, preparing for its next substantial move. Analysts like CrediBULL Crypto foresee short-term consolidation within the current range, followed by a breakout to new all-time highs. The confluence of favorable legal developments and bullish technical patterns could propel XRP’s price into double-digit territory, as evidenced by its 400% surge following Trump’s re-election.
