Will XRP Price Remain Above $0.65 as SEC vs. Ripple Lawsuit Intensifies?
XRP experienced a drop in price to $0.62 on Thursday, falling below the important support level of $0.65. However, there was also a rebound in demand for BTC and the wider crypto market, as net inflows into BTC-spot ETFs fueled buyer interest. Notably, iShares Bitcoin Trust (IBIT) saw record net inflows on March 5, contributing to overall net inflows in the BTC-spot ETF market.
This decline in XRP’s price is significant as it coincides with an important deadline in the ongoing legal battle between Ripple and the SEC. With the SEC set to present its remedies-related opening brief on March 22, investors are closely monitoring how regulatory developments will impact the future of XRP. The Ripple vs SEC case has undoubtedly played a major role in influencing XRP’s price movement, reflecting the broader sentiment regarding the regulatory status of cryptocurrencies.
The next move by the SEC could prove disastrous for XRP, so let’s analyze its price in the coming weeks.
In the meantime, Ripple’s Chief Legal Officer Stuart Alderoty has raised concerns about the SEC’s vague and ambiguous rules, sharing a transcript from an ongoing case involving the agency. This criticism comes at a time when the SEC’s practices have been under scrutiny, potentially attracting attention from US lawmakers.
In February, Senator Cynthia Lummis and four other senators sent a letter to SEC Chair Gary Gensler, threatening to investigate after the SEC filed charges against Debt Box. The Office of Inspector General is currently investigating potential conflicts of interest within the agency regarding cryptocurrencies, which could impact the SEC’s plans to appeal the ruling on Programmatic Sales of XRP. A resolution in favor of Ripple could have a positive impact on XRP’s future price trends.
Considering the OIG Investigation, updates on the SEC vs crypto case, and BTC-spot ETF market flows, XRP’s price may face further correction from a technical perspective. The altcoin might test the psychologically important support level at $0.60 before potentially rebounding. The Awesome Oscillator suggests that there is still room for downward movement, indicating that the correction in XRP may not be complete yet.
However, if XRP manages to close above the 78.6% Fibonacci retracement level at $0.6293, it could signal a reversal of the current bearish trend and provide hope for a potential recovery in the future. With that being said, there is a possibility that XRP could rebound to Tuesday’s high of $0.6692 before entering overbought territory according to the 14-day RSI of 58.01.
Only time will tell if this theory about vague rules will push XRP to lower levels.