The price of XRP, the native token of Ripple, has taken a hit after news emerged that the US Securities and Exchange Commission (SEC) canceled a closed meeting that had fueled speculation of a settlement in the ongoing lawsuit against Ripple.
XRP Price Tumbles on Faded Settlement Hopes
On Thursday, July 18th, 2024, XRP prices slumped by 9%, closing the session at $0.5701. This sharp decline reversed the gains made earlier in the week, which were likely fueled by rumors of a potential settlement between Ripple and the SEC. The canceled meeting and the lack of concrete progress toward a resolution have cast a shadow of uncertainty over the future of XRP.
Canceled SEC Meeting Dashes Investor Optimism
The SEC’s closed meeting, which was scheduled for July 18th in Washington D.C., had generated significant excitement within the XRP community. The agenda for the meeting included discussions on settlements, enforcement proceedings, and litigation claims. Many investors interpreted this as a potential sign that the SEC might be open to settling the long-standing lawsuit with Ripple.
The news of the meeting cancellation came as a blow to these hopes. The SEC has not provided any reason for canceling the meeting, and the agenda did not disclose whether Ripple representatives were expected to attend. This lack of transparency has further added to the anxiety surrounding the case.
Ripple vs. SEC: A Looming Court Verdict
With the possibility of a settlement seemingly fading, investors are now left to contemplate the potential consequences of a court verdict. In July 2023, Judge Analisa Torres ruled that Ripple had violated US securities laws by selling unregistered XRP to institutional investors. This decision could result in penalties ranging from $10 million to a staggering $2 billion for Ripple. Additionally, the SEC might also seek an injunction that would prevent Ripple from selling XRP to institutional investors in the future.
Ripple Expects Verdict Soon, Garlinghouse Maintains Optimism
Despite the recent setbacks, Ripple remains hopeful for a swift resolution. Ripple CEO Brad Garlinghouse has hinted at a possible settlement in the near future, although he has declined to comment on the specifics of ongoing discussions with the SEC. Ripple expects a court verdict in the coming months, potentially even before the upcoming US Presidential Election.
XRP Price Action: Technical Analysis Hints at Potential Direction
While the legal battle rages on, technical analysis of the XRP price chart offers some insights into potential price movements. Currently, XRP is trading above its 50-day and 200-day exponential moving averages (EMAs), which are considered bullish indicators. A break above the immediate resistance level of $0.5739 could propel XRP towards the $0.6609 level. A further push beyond this resistance could even lead to a return to the $0.70 handle.
However, investors should remain cautious. A drop below the crucial $0.55 support level could signal a decline towards the 200-day EMA. The 14-day Relative Strength Index (RSI) currently sits at 62.38, suggesting that XRP might experience a short-term correction before entering overbought territory.
Looking Forward: Stay Informed for Crucial Updates
The coming days and weeks are likely to be critical for XRP. Investors should closely monitor any developments related to the SEC vs. Ripple lawsuit. Staying informed about legal updates and technical analysis can help them make informed investment decisions in this volatile market.