XRP is experiencing low volatility due to the ongoing legal conflict between Ripple and the U.S. Securities and Exchange Commission (SEC). The SEC seeks to impose a substantial penalty on Ripple, proposing a fine of $2 billion, while the XRP community remains optimistic about Ripple's eventual victory.
XRP's jittery movement reflects the anticipation of crypto users regarding the developments in the legal case, as the final outcome could determine the long-term trajectory of the currency. In March 2024, the SEC filed a legal memorandum alleging that Ripple continued to violate U.S. securities laws after the initial complaint in December 2020. The SEC demands the court to impose a hefty fine and to bar Ripple from selling XRP to institutional investors.
In response, Ripple denied the allegations, asserting that it complied with the laws and only sold XRP to accredited investors or through ODL contract-based sales. Ripple aims to convince the judge to rule in its favor to avoid the substantial proposed penalty and the restrictions.
Meanwhile, the crypto community is closely watching the case's progression, especially after the SEC's approval of an Ethereum ETF, which surprised many. A favorable judgment for Ripple could significantly boost XRP's upward momentum.
Chart Analysis and XRP Trends
According to the daily chart of the currency, XRP has shown a continuous rise over the past three days, reflecting a positive outlook among investors. The currency was trading at $0.5253 at the time of writing, with a slight decline of 0.57% from the previous day.
Short-term Trends:
1. *Support and Resistance:* The chart indicates a major support level at $0.5000, while strong resistance is found at $0.5700.
2. *Technical Indicators:* The Relative Strength Index (RSI) and MACD indicators suggest a potential continuation of the upward trend if the current momentum persists.
Long-term Trends:
1. *Fundamental Analysis:* Success for Ripple in the legal case could serve as a strong catalyst for the currency to rise to significantly higher levels.
2. *Technical Analysis:* In the event of breaking the resistance at $0.5700, the currency could see a rise to levels of $0.62 or even $0.70 or 1.21
Conclusion:
XRP remains heavily influenced by the ongoing legal battle with the SEC, where the final judgment could result in substantial shifts in the currency's trajectory. Currently, technical analyses show a continuation of the short-term upward trend, with positive long-term prospects if Ripple secures a favorable ruling.
