Several experts, including law veterans and an ex-SEC director, have opined that XRP escrow accounts could be locked and it could face a fine.
The SEC vs Ripple Labs case has gone through several twists and turns where sometimes the SEC and sometimes Ripple Labs gain the upper hand.
Earlier with the Hinman Docs, XRP gained the upper hand. Now, in the latest series of events, the SEC seems to gain a final upper hand before the case closes.
In 2017, Ripple locked 55 Billion XRPs into an escrow account that releases tokens on a monthly basis. This amount accounts for about 55% of the total supply of 100 Billion.
A Ripple enthusiast gave an opinion in a tweet that it would be a dream ruling for him if SEC gets the custody of all funds in the escrow accounts while the court rules XRP as a commodity.
To this former SEC regional director, Marc Fagel considered that might be a possibility and said it sounds reasonable enough.
Ripple executives did not comment on this ruling perspective but some clarity on the matter is expected over the coming weeks.
If the SEC gets custody of all the XRP in the escrow account and locks it forever, it could result in a sudden spike in the prices because billions of tokens will be taken out of circulation forever.
Further, ruling XRP as a commodity would free it from SEC's jurisdiction and put it into a much more favorable purview of the CFTC.
Considering it to be one of the possible actions in the future, let us see if it has shown any positive signs lately.
Daily charts show that XRP is well above its price support of $0.45. At press time, XRP, the 6th ranked crypto by market cap traded at $0.4728.
However, it faces stiff resistance near $0.50-$0.55 which it failed to break four times since March 2023.
What technicals suggest for XRP price going forward:
Overall, the chart setup looks unfavorable from a trading and investment perspective.
Owing to the immediate resistance and a lack of retail action, Ripple investors and traders might have to wait for some solid on chain and technical signals before diving into a new trade.
Investors should currently be on the safer side. Too much accumulation in XRP should be avoided because, being a legal case, the judgment can be on anyone's side.
In addition to that, larger market movements still affect most altcoins including Ripple's token. Bitcoin and its price movement in the coming days could significantly impact XRP's trajectory.
However, investors should also remember that this is a legal perspective only and no indication of any such ruling is visible currently.
Experts can have different opinions, but none of them can be necessarily true.
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.