- The SEC vs Ripple case has been going on for more than a year, and it seems that Ripple may have an edge over the SEC at this point.
- XRP has also seen a remarkable increase in its network activity and user adoption.
- XRP’s price has broken above the crucial resistance level of $0.50 on May 30th, reaching its highest level since April.
- The increased network activity and price performance of XRP suggest that its supporters are confident and optimistic about its prospects.
- XRP could soar to $1 or higher if Ripple wins the case or reaches a favourable settlement with the SEC.
XRP, one of the most popular and controversial cryptocurrencies in the market has been in the news a lot lately.
Ripple Labs, the company behind it has been locked in a legal battle with the U.S. Securities and Exchange Commission (SEC) since 2020 when the regulator accused it of selling unregistered securities in the form of XRP tokens.
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This legal battle has had significant implications on the price of the cryptocurrency, keeping it below the $1 mark for years, despite being almost the same age as Ethereum.
However, despite the uncertainty and challenges, Ripple and XRP have been showing signs of strength and resilience in recent weeks.
The network activity, user adoption and price performance of XRP have all improved, indicating growing optimism and confidence among its supporters.
The question comes:
Is it now time for XRP to shine? Will XRP and Ripple finally be the ones to beat the SEC in court and become a shining light for the future of crypto regulation and innovation?
Is XRP ready for a major rally that lifts it off the ground and catapults it straight up $1?
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Let’s take a look at some of the latest developments and factors that could influence its trajectory. Stick with us.
Ripple Poised To Thrash The SEC
The SEC vs Ripple case has been going on for more than a year, with both parties exchanging motions, arguments and evidence in court.
The SEC claims that Ripple raised a whopping $1 billion in 2013, through the sale of XRP as an unregistered security, while Ripple argues that XRP is not a security and that the SEC lacked fair notice and clarity.
The case has seen several twists and turns, but it seems that Ripple may have an edge over the SEC at this point.
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In a recent interview, Ripple CEO Brad Garlinghouse said he expects the case to conclude in “weeks not months”, offering a positive outlook that might have spurred some of the increased network activity.
One of the key factors that could favour Ripple is the testimony of William Hinman, the SEC’s former Director of Corporate Finance, who said in 2018 that Ethereum (ETH) is not a security. The court recently ruled that the notes and emails associated with his speech will be made public by June 13th, which could potentially reveal some inconsistencies or contradictions in the SEC’s position.
According to a tweet from pro-XRP lawyer, John Deaton, some of the SEC documents that were provided as part of the case’s files, show that the SEC had received legal opinions before suing Ripple, that “XRP does not satisfy all elements of the Howey test and is therefore not a ‘security’ for the purposes of the federal securities laws.”
Read this short 🧵 please. When you look at all the other SEC-LIT-EMAILS cited in Ripple’s opposition, they are redacted. The one about there being reasonable grounds to not believe XRP satisfies all the Howey factors is not redacted. https://t.co/qoaCbjk7rg pic.twitter.com/Nc6kfNMJ4c
— John E Deaton (@JohnEDeaton1) May 21, 2023
This proves that the SEC had enough reason to believe that XRP was not a security, but went ahead to sue Ripple anyway.
Some observers like @Leerzeit in this tweet, are even starting to ask questions about whether the SEC simply sued Ripple, not out of obligation, but as some kind of “attack” against the company.
Another one who even only worked as Co Director of Enforcement because of his conflicts of interests with Sullivan&Cromwell client ConsenSys. Another ConsenSys lawfirm SEC director who's involved in Initiation and filing of the Ripple case. https://t.co/Ti9OpFaJrA pic.twitter.com/nmwOL3IYRb
— Mr. Huber🔥🦅🔥 (@Leerzeit) May 29, 2023
Another factor that could help Ripple is the support it has received from other crypto industry leaders and stakeholders, some of whom have accused the SEC of “regulation by enforcement” and overreach. Ripple has also gained international recognition and partnerships, especially in Asia and the Middle East, where XRP is widely used for cross-border payments and remittances.
XRP Network Activity Spikes
As the court case progresses, XRP has also seen a remarkable increase in its network activity and user adoption.
According to data from Santiment, the XRP ledger recorded its second and third-largest address activity spikes of all time on May 27th and 28th, respectively.
The daily active addresses (DAA) metric measures the number of new wallets interacting with a network per day.
XRP’s DAA jumped from 18,090 on May 26th to 490,350 on May 29th, representing a staggering 2,600% increase in 24-hour user activity.
This surge in network demand has also translated into upward momentum in XRP’s price over the past few days. XRP broke above the crucial resistance level of $0.50 on May 30th, reaching its highest level since April.
This level had been acting as a major obstacle for XRP since April 19th, when it dropped sharply following the market-wide crash.
The increased network activity and price performance of XRP suggest that its supporters are confident and optimistic about its future prospects, especially as the court case nears its end.
Some analysts and traders have predicted that XRP could soar to $1 or higher if Ripple wins the case or reaches a favourable settlement with the SEC.
XRP Price Analysis And Targets
As illustrated below, XRP has continued atop an ascending trendline since rebounding from its low of $0.42 on May 11th.
The cryptocurrency has gained over 20% in the past 20 days, outperforming most of its peers in the crypto market. However, it still faces some challenges and resistance levels before it can reach its previous highs or break new records.
On the daily chart, XRP is trading above its 50-day, 100-day and 200-day moving averages (red, green and blue), which are very bullish indicators.
Because of the recent rally on the cryptocurrency, the relative strength index (RSI) is only now recovering from overbought conditions. This indicates that the bulls may now be taking profits, leaving the bears some room to take control.
XRP has reversed for a retest of the $0.5 zone. However, in the long run, the cryptocurrency needs to stay above this zone to confirm its bullish breakout and target higher levels.
If XRP declines below the $0.5 zone and closes there, the bears will surely step in and push it to the next support around $0.44 or lower.
XRP’s Price Targets
Truth be told, the road to the $1 zone is a long and weary one. However, for now, the next resistance levels are at
All of these zones correspond to previous peaks as illustrated by the Fibonacci retracement levels.
If XRP can clear these hurdles, it could aim for $0.75, which is the 61.8% Fibonacci retracement level of the drop from $1.96 to $0.42.
On the downside, if XRP fails to hold above $0.50, it could face some selling pressure and retrace lower. The immediate support levels are at
- $0.45 and
Both of which which are psychological levels and previous lows, and a break below these levels could trigger a deeper correction towards $0.35 or $0.30.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.