- Summary:
- XRP price has been subdued in the last three years due to a legal war, but recent shifts have given us a glimpse of what could become of it.
XRP price went down on Tuesday trading at $1.098 after losing 1.5 percent of its value at the time of writing. The crypto coin rose strongly last week, breaking into the $1.00 territory on Saturday, for the first time since December 2021. The recent XRP price rally is attributed to developments in the case filed by the Securities and Exchange Commission (SEC) against XRP issuer Ripple Labs.
SEC Chairman Gary Gensler hinted last week that he could resign from his position, a move that could spell good news for XRP. Gensler is viewed as highhanded, and his tenure at the helm of the market regulator is characterised by multiple lawsuits against crypto institutions. XRP has particularly suffered since the SEC filed a lawsuit against Ripple Labs and its CEO, Brad Garlinghouse in December 2021.
A Federal court fined Ripple Labs $125 million in September, seen as a slap on the wrist relative to the SEC’s request for a $2 billion fine. Meanwhile, 18 states sued the SEC last week, stating that the regulator has treated the crypto industry unfairly and overstepped its constitutional mandate.
This is seen as the beginning of an onslaught against the SEC’s perceived overreach. Coupled with the incoming crypto-friendly Trump presidency and Republican-controlled Congress, this could force the regulator to withdraw non-criminal cases against industry institutions, including Ripple Labs.
A return to the $1 mark after three years signifies how the SEC’s withdrawal of such cases could bring tailwinds to XRP. Meanwhile, XRP price could also be boosted if the SEC approves the spot ETF filings by Canary Funds, Bitwise and 21Shares. Such an approval could attract institutional investment in XRP, which is currently subdued.
XRP price prediction
The momentum on XRP price favours the upside above the pivot mark at 1.090. With that, the first resistance will likely come at 1.113. However, a stronger upside momentum will breach that barrier and potentially test 1.138.
Alternatively, moving below 1.090 will favour the downside. In that case, the first support could come at 1.073. However, if the downward momentum strengthens, the price could break below that level and invalidate the upside narrative. Meanwhile, the resulting momentum could push XRP lower to test the second support at 1.051.
