The recent ruling in favor of Ripple, the parent company of XRP, stands as a significant milestone in the crypto world. The United States Securities and Exchange Commission (SEC) deemed XRP not a security, sparking a surge of optimism among crypto enthusiasts and investors. This article will explore the implications of this ruling, its impact on XRP’s price, and how it might shape the future of cryptocurrency regulations. XRP Declared Non-Security!
The Ripple Effect of the SEC Case
The ripple effect of the SEC‘s ruling is evident in the bullish momentum that XRP has experienced since the verdict. This outcome has shifted focus towards the potential influence of such regulatory clarity on the future price movement of XRP.
Crypto trading analyst Michael van de Poppe speculated on the possible ‘mega move’ XRP could make if it breaches key price ranges. His analysis spotlighted the price range between $0.65 and $0.69 as particularly worthy of attention.
“Mega move, for scalps I’d be interested in the ranges of $0.65-0.69 on this one. If that sweep happens, probably we’ll have a new leg up after,” he noted.
The Upshot of the SEC Case
In the wake of this ruling, XRP has seen a slight correction, following a dramatic increase in value. After the court ruling, the cryptocurrency reached a multi-month high of $0.93, recording nearly 90% gains within 24 hours.
This rise allowed Ripple to outshine other established cryptocurrencies in several metrics. For instance, XRP’s trading volume on the South Korean crypto exchange Upbit surpassed that of Bitcoin, reaching $2.6 billion within 24 hours.
However, the legal narrative surrounding XRP isn’t over yet. The presiding judge ruled that Ripple had violated federal law by selling XRP directly to investors. Bill Morgan, a pro-XRP lawyer, also expressed concerns about some aspects of the judgment.
XRP Price Synopsis
At the time of writing, XRP was trading at $0.73, marking a decline of nearly 8% in the past 24 hours. Despite this short-term slump, XRP has rallied over 55% in the last seven days.
From a technical analysis standpoint, XRP is currently dominated by bullish sentiment. A summary of one-day gains obtained from TradingView suggests a ‘buy’ option at 15, while the moving averages recommend a ‘strong buy’ at 13. The oscillators remain neutral at 8.
Currently, XRP is facing significant resistance levels, with the $1 mark standing out as a potential milestone to watch for. However, despite the bullish sentiment surrounding XRP, failure to close above the current $0.75 resistance area could result in a significant retracement.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
A Resurgence in Cryptocurrency
The resurgence in the value of top cryptocurrencies like Bitcoin, Ethereum, BNB, XRP, and others after the 2022 price crash marks a significant shift in the crypto market.
Bitcoin’s price has doubled from its late 2022 price, topping $30,000 per bitcoin. This rebound has been aided by two shock crypto flips that have lent a helping hand to the recovery of the crypto market.
The anticipation of $30 trillion worth of capital hitting the market, if any one of the recent flurries of U.S. spot bitcoin exchange-traded fund (ETF) filings are approved by the SEC, has led to a surge in optimism.
“The big deal is that the ETF is the platform or vehicle that so many financial advisors prefer,” said Bloomberg Intelligence ETF analyst Eric Balchunas. “This matters because financial advisors manage about $30 trillion in assets [and] this would open up all that money. Even 1% or 2% of $30 trillion is a lot of money … it’s a bridge to all that wealth.”
The Ripple Case: A Turning Point?
The crypto market has rocketed, adding around $60 billion, after Ripple claimed victory in its long-running legal battle with the SEC. A U.S. judge ruled that the sale of XRP on crypto exchanges did not amount to sales of investment contracts as alleged by the regulator. However, Ripple’s direct sale of $700 million worth of XRP to institutions, hedge funds, and other parties violated securities laws.
Following the eagerly-awaited ruling, the XRP price almost doubled, surpassing Binance’s BNB to become the fourth-largest cryptocurrency by market capitalization. The bitcoin and crypto world celebrated the ruling, interpreting it as a setback to the SEC’s claim of authority over cryptocurrencies.
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The Future of Cryptocurrency Regulations – XRP Declared Non-Security
The outcome of the Ripple case might have far-reaching implications for the future of cryptocurrency regulations. It could pave the way for further clarity in identifying what should and shouldn’t be considered a security in the eyes of U.S. regulators. This decision could be promising for retail-facing projects and might trigger a wave of innovation in the crypto sector.
However, like many things involving the sector, the decision isn’t completely clear-cut. There are still open questions, and the legal saga surrounding XRP is far from over. But for now, the crypto world can celebrate this small victory on the path to greater regulatory clarity.
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