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XRP falls as SEC appeals important rulings, causing uncertainty in Ripple’s legal battle.
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SEC challenges Ripple’s rulings on programmatic XRP sales and disgorgement.
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XRP could fall below $0.50 due to bearish signals and increasing legal uncertainty.
The ongoing legal dispute between the SEC, Ripple and Ripple has increased the volatility of XRP’s price. XRP plunged below the $0.55 mark, reaching a minimum of $0.5222 on 3 October. Investors are still worried that the SEC appeal could push XRP below $0.50.
Recent trading has also shown XRP to be under pressure and lagging behind the wider crypto market. Ripple’s loss was 3.08%, while the crypto market dropped by 0.15%.
The SEC’s Notice of Appeals, filed on October 2nd, indicates their intention to challenge certain aspects of recent rulings in SEC v Ripple. The SEC is especially interested in the court decisions on two major questions.
First, the court rejected the SEC’s demand that Ripple pay a disgorgement of $1.1 billion, which is seen by the SEC as a major setback. Second, the ruling regarding the programmatic sales XRP where the court determined that these sales did meet the criteria of Howey Test may also be contested.
This appeal has caused new uncertainty in the market and pushed XRP lower. Investors are watching to see if Ripple will file another cross-appeal. Some legal experts think Ripple is entitled to file a cross-appeal to protect its position in court.
Former SEC lawyers have commented on the likely appeal strategy, with many pointing to broader implications for other cryptocurrency-related cases, including those involving exchanges like Coinbase and Kraken.
Read about Ripple’s expansion in UAE with a new financial services license
XRP Could face a dip below $0.50
XRP’s current price is below its 50-day and the 200-day Exponential moving averages (EMAs), indicating a bearish market. XRP could reach $0.50 if the price breaks below the current $0.5075 low.
Technical analysts consider the $0.50 level as crucial, because a further decline below this level could trigger more selling pressure. The Relative Strength Index reading of 36.72 indicates that XRP is approaching oversold territory and increasing the likelihood of a further decline.
Read Also: Ripple’s Cross-Appeal Could Be Delayed As SEC Fails To File Form C
While investors wait for the SEC to file its detailed Form C, which will detail exactly what the agency is appealing the price of XRP continues to fluctuate. Future price trends will be influenced by news and updates about the court case and ripple. Market speculation suggests XRP may fall even further if the SEC is successful in its appeal of the programmatic sales decision.
