The price of XRP has skyrocketed after District Judge Analisa Torres published the summary ruling in the legal battle between Ripple and the Securities and Exchange Commission (SEC). However, after temporarily surging nearly 100% on the day of the decision, XRP price witnessed an initial consolidation. Now, the price could come out of this consolidation phase, due to many positive news.
After the partial victory in the legal battle, the news has been piling up for Ripple. Fintech has received support from many lawyers as well as Republican and Democratic politicians in the United States. In addition, Ripple’s Chief Legal Officer (CLO), Stewart Aldrotti, announced that US financial institutions could soon rely on XRP for cross-border payments.
Why did XRP rise today?
After the ruling, there was a seismic shift in US policy towards cryptocurrencies. Ron Hammond, Director of Government Relations at the Blockchain Association, highlighted The impact of Ripple’s legal victory on US cryptocurrency politics yesterday. He explained, “While the case was not a complete ‘win’ for Ripple, it did significantly weaken the SEC’s arguments.” Democrats want action now, after years of praising the Securities and Exchange Commission and its enforcement actions.
This is a positive sign for Ripple, as the US Democrats, as the ruling party, can influence the SEC under Gary Gensler, possibly blocking appeals by getting comprehensive cryptocurrency legislation in the US Congress. The appeal could be a potential damper for the price of XRP.
It is noteworthy that US Representative Richie Torres, a prominent figure in the Democratic Party, applauded The resolution states that “digital assets are not securities in themselves but can be part of investment contracts, which are securities.” This huge endorsement by a lawmaker shows a shift in perspective towards digital assets, which adds credibility to Ripple’s case.
Caroline Pham, one of the five commissioners on the CFTC, said after the brief ruling that Ripple’s legal victory paved the way for much-needed regulatory clarity in the United States.
Furthermore, Judge Sarah Knitbourn’s order for a settlement conference, along with her recommendation to schedule it 6-8 weeks in advance, has ignited expectation of a settlement between Ripple and the SEC within the coming weeks. If successful, this settlement could not only put an end to the lawsuit, but it could also eliminate the possibility of an appeal by the SEC, further boosting XRP’s price prospects.
Ripple’s partial victory has also led to speculation about its possible use by US banks and financial institutions. Ripple’s Chief Legal Officer, Stuart Aldrotti, expressed optimism, saying, “I think the answer to that is yes… I hope this quarter will lead to a lot of conversations in the US with clients, and hopefully some of those conversations will turn into real business.”
Ripple plans to engage in discussions with US-based financial institutions regarding the adoption of its On-Demand Liquidity (ODL) product, which uses XRP for seamless cross-border payments, further enhancing the potential of XRP. The number of good news for Ripple is definitely a driving factor for the price.
XRP price analysis
From a technical perspective, the XRP price picture is equally bullish. After the price was rejected at the 38.2% Fibonacci retracement level last Thursday, the day the decision was issued, the overheated market corrected to the 23.6% Fibonacci retracement level at $0.68. At this price level, the XRP bulls stepped in perfectly.
A look at the shorter timeframes (1 hour chart) shows that XRP is back in a clear bullish trend since Monday. But in the first attempt, the XRP price failed at the $0.82 level. But if this resistance is breached, a quick rise to the 38.2% Fibonacci retracement level at $0.93 is likely. If this level is also broken, only an increase in selling pressure at $1.13 is expected.
Featured image from iStock, chart from TradingView.com