The case between Ripple and U.S. Securities and Exchange Commission (SEC) is almost concluding. The case’s implication to ripple price will have a far-reaching effect and may determine its performance in the coming months and years.
However, for now, Ripple looks to be continuing its bullish move that started last month, when it surged by more than 45 per cent. However, in yesterday’s trading session, it dropped by 7 per cent, and the aggressive bearish trend looks to be continuing today, which has seen October’s price gain cut to less than a percentage point.
The drop in price comes amidst reports that Judge Analisa Torres had backed a motion requesting the agency to surrender the drafts of William Hinman’s speech to Ripple. The SEC has remained mum two days before the window they can file a motion for reconsideration of the ruling expires, indicating a likelihood that they might submit these documents.
If Hinman documents are released to Ripple, it is expected to be a huge milestone for the platform. People privy to the documents indicate that Hinman had made arguments that would have exempted Ripple from the SEC’s classification of the XRP trading as securities, therefore deeming their case unnecessary. There have also been many indications that, in the past few court sessions, the case has gone in Ripple’s way, restoring investors’ confidence.
Despite yesterday’s 7 per cent price drop and today’s continuation of the bearish trend, my price prediction for Ripple remains to the upside. There is a high likelihood that, in the next few trading sessions, Ripple price will resume the long-term trend that saw it surge by more than 45 per cent in September.
The upcoming case is also likely to boost the Ripple price, as many expect the platform to win against SEC. Therefore, a trade above the $0.57 resistance level is a likely outcome, with a possible long-term price level of over $0.70. However, a trade below $0.45 will invalidate my analysis.
This post was last modified on Oct 11, 2022, 14:18 BST 14:18