The future price of XRP is heavily dependent on the outcome of the SEC vs. Ripple case, as investors are cautious about the potential impact on its sales to US institutional investors.
Analysts predict that XRP could either rally to $0.55 or decline to $0.45, considering its current position below the 50-day and 200-day EMAs.
On Monday, July 1, the price of XRP saw a minimal increase of 0.23% following a 0.70% gain on Sunday, June 30. As of now, the asset is trading at $0.47, with a 0.45% surge in the last 24 hours and a 0.61% increase in the last seven days.
The lack of significant movement in XRP’s price is attributed to the lack of progress in the ongoing court case between Ripple and the SEC. Investors anxiously await the court’s verdict after the SEC filed its opening brief seeking a nearly $2 billion penalty.
The SEC is also seeking an injunction to prevent the sales of XRP to institutional investors, which adds to the uncertainty surrounding the case.
One of the key arguments in the case is whether the post-complaint sales of XRP by Ripple constitute unlawful activity. Ripple’s lawyers argue that these sales were made to accredited investors or through ODL contracts, which exempts them from securities laws and profit expectations.
Despite this defense, XRP investors remain cautious as the court ruling could have significant implications. The potential prohibition of XRP to US institutional investors is particularly concerning, as it could hinder the asset’s expansion into the US and global markets.
Investors are also closely monitoring the SEC’s decision to appeal against the ruling in the Programmatic Sales case. Judge Amy German Jackman’s recent ruling dismissing the SEC vs. Binance case has raised doubts about the SEC’s approach, as it is deemed inconsistent with the Supreme Court’s directives.
The outcome of the SEC vs. Terraform Labs case, presided over by Judge Rakoff, is also relevant to XRP investors. Judge Rakoff held a contrary opinion, criticizing the Programmatic Sales ruling and stating that Terraform Labs and Do Kwon failed to register their assets as securities.
With these uncertainties, XRP’s price has been significantly affected, remaining below the 50-day and 200-day EMAs. If it surpasses the 50-day EMA, it could reach $0.55, but a drop below $0.4650 could cause a decline to $0.45. The 14-day RSI reading of 42.80 suggests that the price may fall into the $0.45 zone before entering oversold territory.
In conclusion, XRP investors are advised to proceed with caution due to the ongoing legal proceedings, which have a direct impact on the asset’s price.