The lingering case between the U.S. Securities and Exchange Commission (SEC) and Ripple is impacting XRP’s price action. The embattled altcoin has experienced an extended period of low volatility despite notable developments among other elements of the crypto industry.
XRPUSD Daily Chart on TradingView
XRP’s behavior reflects the keenness with which crypto users observe developments in the SEC vs Ripple case, with an eventual outcome that could determine the altcoin’s long-term trend. For context, the SEC is seeking severe punishment for Ripple, with plans to appeal an initial judgment that partially exonerated the fintech firm from breaking the commission’s rules.
In a March 2024 remedies-related opening brief, the SEC filed that Ripple continued to breach U.S. securities laws after a December 2020 complaint. Following the claim, the commission sought the court to condemn Ripple to a $2 billion penalty and an injunction stopping the firm from selling XRP to institutional investors.
Meanwhile, Ripple responded to the SEC’s filing, claiming not to have breached the laws of the land. Ripple claimed it sold XRP to accredited investors or through ODL contract-based sales. The blockchain firm seeks to convince Judge Torres to rule in its favor to avoid a potential $2 billion penalty and an injunction.
The crypto community appears to be keenly observing how the case will unfold, especially with the SEC’s recent Ethereum ETF approval that surprised many users. A favorable judgment for Ripple could inject an upside momentum for XRP, setting the altcoin up for a significant bull run.
Despite low volatility, XRP has experienced three days of continued upside momentum. The embattled altcoin closed above its opening price for the past three days, reflecting a positive outlook among community members. The embattled altcoin traded for $0.53910 as of the time of writing, following a 0.42% pullback from the previous day’s 1.43% gain, according to data from TradingView.
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