Ripple (XRP) bulls are back in the flat cryptocurrency market, which is cautiously awaiting the US Federal Reserve’s announcements of a rate hike later today.
The seventh cryptocurrency price jumped 11.8% to $0.4215 late Tuesday, September 20th, making XRP the biggest gainer over the past 24 hours. The last time Ripple (XRP) was trading at similar levels, it was around 4 months ago or at the end of May 2022. So, what happened?
The crypto space whispers that the main reason for the optimism driving the price of XRP up may be the approaching end of the long-running lawsuit between Ripple Labs and the US Securities and Exchange Commission (SEC).
The Securities and Exchange Commission caused the price of XRP to rise
This weekend, Ripple Labs presented. , the company behind XRP and the US government watchdog, has requested an expedited ruling. Simply put, they both asked the federal judge to end the “unregistered securities” case without a jury trial.
The next day, Brad Garlinghouse, CEO of Ripple he met With Caroline de Femme, the Commodity Futures Trading Commission (CFTC) commissioner that oversees US derivatives markets, who visited Ripple’s office. Although none of the parties revealed the purpose of their visit, the fact that it did sparked an uproar across the XRP community.
Lawyers say SEC’s arguments could destroy its ability to regulate
Although they agreed on the summary judgment, Ripple Labs and the SEC revealed completely different arguments and even a range of arguments, which could have a very different impact on the market at the end of the proceedings.
according to Attorney Jeremy HoganThe SEC shoves focused on Ripple sales and XRP marketing and focused “only on the facts about this case,” while Ripple Labs argued for a broader concept of how exactly an “investment contract” should be defined.
“If the SEC wins, it will only win this case, but if Ripple wins — boy — the argument is pretty broad. That it could hinder the SEC in everything it does from this day forward,” notes Hogan, adding that Ripple’s argument could damage the SEC’s ability to regulate the digital asset space if it is adopted.
The legal battle between the SEC and Ripple Labs began at the end of 2020 after the SEC filed a $1.38 billion lawsuit against the blockchain payment service provider and its managers over the alleged sale of unregistered XRP securities.
The lawsuit centers on the question of whether XRP meets the criteria of an “investment contract” defined by the Howey test and is therefore a security. From the start, the high-profile lawsuit has grabbed the attention of the crypto community, as it may set a precedent for how digital assets are handled in the United States.
In addition to the fundamental optimism regarding the possible positive legal outlook for Ripple (XRP), technical indicators are also pointing to an upward price movement.
XRP price is far from the extended lows at $0.32 and just broke above the 20-day moving average (MA) and the $0.38 resistance line on a weekly basis.
According to a cryptocurrency trader CoinsXRP price is now on the ascending triangle, which is a reversal pattern that usually indicates a bullish formation that anticipates a bullish breakout to $0.50 levels and above.
At the time of writing, Ripple (XRP) is trading at 0.40 USD The level after recovering from its daily decline of nearly 7% to $0.3928. The coin is still below its historic high of $3.40 in January 2018 by 88.1%.
Ripple (XRP) is one of the fastest growing payment service providers on the blockchain, competing directly with traditional players in cross-border financial services. If the company wins the legal battle with the Securities and Exchange Commission, the price of XRP is expected to rise, as the ongoing lawsuit with the regulatory authority is one of the biggest factors weighing on its price.