SEC files appeal injecting uncertainty into XRPs market rally
SEC files appeal injecting uncertainty into XRPs market rally
On October 18, XRP is trading around $0.55, having gained more than 1% over the past 24 hours. However, traders need to be aware that Ripple’s cryptocurrency is currently experiencing increased volatility due to uncertainty surrounding the legal dispute with the The United States Securities and Exchange Commission (SEC).
Earlier, media outlets reported that the U.S. Securities and Exchange Commission (SEC) missed the deadline to appeal a court decision in the Ripple case, which contributed to the coin’s rise.However, on Friday, the SEC did file an appeal challenging the court's ruling on XRP's status as a security. This move contests key parts of the decision issued in July 2023 by Judge Analisa Torres and leaves open the question of how XRP sales on cryptocurrency exchanges and digital trading platforms will be interpreted.An important fact is that Judge Torres deemed the personal sales of XRP by Ripple executives Brad Garlinghouse and Chris Larsen as legal. However, how the court will approach this issue in the new round of proceedings remains unclear.
Is there enough support?
Additional support factors for XRP include bullish sentiment in the altcoin market and the social impact of the annual Ripple Swell 2024 conference, held on October 15-16 in Miami.This event brings together experts in financial services and blockchain, increasing media interest in XRP and Ripple through announcements of new products and partnerships.
However, whether investor enthusiasm will be enough for XRP to break through the strong resistance levels at $0.5500 and $0.5550 remains dependent on future developments in the cryptocurrency market and the twists and turns of the legal battle with the SEC, making this a rhetorical question.
Otherwise, we risk seeing a correction back to the support level of $0.546 and potentially lower towards $0.5, where XRP was trading in July.
Read also: CySEC announces deadline for CASP applications.
