On Saturday, July 20, XRP surged by 3.61%, following a modest 0.54% rise on Friday, July 19, closing the session at $0.5939.
SEC vs. Ripple: Potential Settlement in Sight
On Saturday, July 20, investors responded positively to news that the SEC rescheduled its July 18 closed meeting to July 25. The SEC’s Sunshine Act Notice has sparked speculation about a potential settlement in the ongoing Ripple case.
The Sunshine Act mandates the SEC to provide notice of meetings and a general agenda, without disclosing an attendee list. The broad agenda could encompass settlement discussions with Ripple.
This week, Ripple CEO Brad Garlinghouse avoided commenting on settlement talks, stating he could not discuss the matter.
In a settlement, the SEC and Ripple would agree on the penalty Ripple must pay for allegedly violating US securities laws. In July 2023, Judge Analisa Torres ruled that Ripple breached US securities laws by selling unregistered XRP to institutional investors. A remedies-related court verdict is expected soon.
Settlement and Its Legal Implications
If the SEC settles with Ripple, it would be unable to appeal the court rulings from the case, including the significant ruling on Programmatic Sales of XRP. In July 2023, Judge Torres concluded that programmatic sales of XRP do not satisfy the third prong of the Howey Test.
Such a settlement could set a precedent for other crypto-related cases, marking a significant victory for Ripple and the broader US digital asset sector.
In June 2024, the presiding judge in the SEC vs. Binance case referenced the Programmatic Sales of XRP ruling, dismissing SEC charges against Binance. Judge Amy Berman Jackson stated,
“The court is inclined to agree with the approach of the court in Ripple Labs, since the ‘it-is-what-it-is’ approach of the SEC appears to be inconsistent with the clear Supreme Court directives […].”
XRP Price Impact and Future Outlook
A settlement could increase demand for XRP, potentially driving its price toward the $1.00 mark. On July 13, 2023, XRP surged to a high of $0.9327 following court rulings. However, the threat of an SEC appeal later pushed XRP below $0.50 in August 2023.
Investors should stay vigilant as the SEC vs. Ripple case continues to influence XRP price trends. Keep up with our latest news and analysis to effectively manage your exposure to XRP and the broader crypto market.
XRP Price Action
Daily Chart Analysis
XRP remains well above the 50-day and 200-day EMAs, reinforcing bullish price signals.
A breakout from $0.60 could allow bulls to target the $0.6609 resistance level. An XRP move through this resistance could signal a climb toward the $0.70 mark.
Conversely, a drop below the $0.5739 support level could lead to a fall toward the 200-day EMA.
With a 14-day RSI reading of 66.49, XRP could break above the $0.60 handle before entering overbought territory.