XRP price stays subdued following the decision by the Securities and Exchange Commission (SEC) to appeal an earlier ruling that was deemed to have favoured XRP issuer, Ripple Labs. XRP traded at $0.544 at the time of writing, up by 0.4 percent. However, the crypto coin has dragged behind the market bellwether, Bitcoin, with its returns at -3.5 percent in the last month against BTC price gains of 14.6 percent over the same period.
Nonetheless, XRP’s resilience remains at play, and the coin’s performance will likely oscillate as the SEC and Ripple Labs present their case. The bad news is that the appeal is likely to take at least a year, with its conclusion around 2026. Therefore, that will subdue XRP price in the long term.
However, both litigants are expected to file their appeals plans in the next month, with the SEC expected to highlight aspects of Judge Torres’ rulings it seeks to overturn. That could provide significant volatility and momentum for XRP price.
In the intervening period, however, XRP price will likely trade within small margins of the $0.500 psychological support. Technically, XRP has the upper hand as things stand, at least until the case is concluded. That provides a time window of about 12 months during which XRP bulls could grow more confident of trading the asset.
In a significant development, Grayscale just filed an application with the SEC to convert its Digital Large Cap Fund to an ETF. The mixed crypto asset product is currently at $524 million in AUM and consists of Bitcoin, Ethereum, Avalanche, Solana and XRP. Two other firms, Bitwise and Canary have also logged their XRP ETF applications this week. Therefore, investors will be keenly watching to see if the applications will be approved, as it could have a significant impact on XRP price.
XRP price has recently built upward momentum, and the upside will likely prevail if the asset stays above 0.547. With the bulls in control, the first barrier could come at 0.554. However, a stronger upward push could break above that level to test 0.560.
Conversely, moving below 0.547 will favour the sellers to take control. The downward momentum will likely find initial support at 0.541, but an extended bearishness could lead to further losses to break below that level. Meanwhile, the upside narrative will be invalid at that point, and a second support could come at 0.535.
This post was last modified on Oct 16, 2024, 15:21 BST 15:21