XRP Lawsuit Appeal: SEC Faces Potential Financial Fallout

The XRP lawsuit continues to generate significant buzz within the cryptocurrency community, with the potential financial implications for the US Securities and Exchange Commission (SEC) if it loses an appeal becoming a major point of discussion.

Potential Impact On US SEC If It Loses XRP Lawsuit Appeal

In a recent X post, lawyer Fred Rispoli reignited speculation about a potential appeal in the case, raising questions about the potential costs the SEC could incur if Ripple were to win. The debate has centered on whether the SEC would be liable for not only repaying the $125 million penalty imposed on Ripple but also additional statutory interest payments.

The XRP lawsuit has been a major legal battle, with Judge Analisa Torres recently ruling in favor of Ripple, finding that the firm’s 1,278 institutional sale transactions did not violate securities laws. While this was seen as a partial victory for Ripple, the possibility of an appeal by the SEC has remained a topic of discussion.

If Ripple were to win an appeal, legal experts have suggested that the SEC could face significant financial consequences. In addition to repaying the penalty, the agency may also be required to pay statutory interest, legal fees, and other costs associated with the appeal.

The potential financial stakes involved in the case have increased the interest in the outcome of a potential appeal. If Ripple were to win, it could have far-reaching implications for the broader cryptocurrency market, as it could set a precedent for how other cryptocurrencies are regulated.

Potential Appeal And Its Impact On Ripple & The SEC

The potential for an appeal by the SEC has been a topic of speculation for months. Legal experts like MetaLawMan have previously said that the US SEC is likely to appeal the ruling, particularly focusing on the court’s decision regarding disgorgement.

In addition, he also said that Ripple might launch a cross-appeal, arguing that the court’s decision on institutional sales was flawed. The blockchain payment firm could contend that these transactions do not meet the criteria of an investment contract under the Howey test.

This argument, if successful, could further weaken the SEC’s position and have far-reaching implications for other crypto cases like Binance, Coinbase, and others. Besides, it has also sparked discussions over a renewed battle in the recently concluded XRP lawsuit.

XRP Price Analysis

XRP price stands tall among crypto prices during the US trading session on Tuesday. Unlike Bitcoin (BTC) and Ethereum (ETH), which suffered a 2.6% and 4.5% setback amid increasing market uncertainty, Ripple’s XRP is up 1.7% to $0.5973.

XRP Price Market Movers: Whales Go On Buying Spree, MVRV Signals Buy, Ripple vs. SEC Lawsuit

XRP price signals a major bullish move above $0.6 resistance as whales turn to the token, buying over 50 million XRP. On-chain data from Santiment reveals consistent growth in the number of tokens held in wallets, between 1 million and 10 million. Moreover, whale transactions with a more than 1 million USD value shot up to 25 on August 26, implying a positive long-term outlook.

The Market Value Realised Value (MVRV) 2.445% increase on Santiment suggests that investors are holding XRP at a profit. This is a bullish indicator, suggesting potential upward price movement. However, caution will be advised as the metric continues to rise, as holders may choose to sell for profit, resulting in selling pressure and a correction.

While the court delivered the final ruling in the Securities and Exchange Commission (SEC) against Ripple, uncertainly still shrouds the company and XRP price whether the regulator will proceed with an appeal. So far, the SEC has not revealed the direction it intends to take, especially Judge Analisa Torres falling short of granting an injunction against the sale of XRP to institutional investors. Nevertheless, Torres granted the SEC’s injunction, warning Ripple not to violate US securities laws in the future. An appeal could push XRP into disarray with a sell-off like to follow.

XRP Price Prediction: Targeting Inverse H&S Pattern

XRP price is gearing up for a major inverse head and shoulder (H&S) breakout. This 21.6% bullish thesis follows a minor correction from last week’s move to $0.63. Bulls embraced the 20-day Exponential Moving Average (EMA) support at $0.5863.

The pattern formed when XRP price established three relative troughs, with the middle trough (the head) being lower than the outer two (the shoulders). A neckline (dotted) connects the highs of the shoulders. Note that a breakout above the neckline signals a potential 21.6% bullish reversal to $0.74. Traders can profit by entering long positions after the breakout with stop losses below the same neckline.

The bullish outlook in XRP will cease to exist should the 20-day support fail to hold, resulting in another retracement toward the 20-day and the 200-day EMAs, respectively.

XRP Technical Analysis

With its price beginning to show signs of strength XRP is preparing for another attempt at a surge. It has served as a crucial level of support when XRP has recently pulled back to its 26-day Exponential Moving Average (EMA).  For traders hoping for another breakout this bounce off the 26 EMA suggests that the asset is attempting to sustain its upward momentum. The trading volume is declining which is a worrying factor. Generally price movements require a spike in trading volume to be sustained particularly when breaking through important resistance levels.

Short-term upward pressure on XRP may be hampered by the decreasing volume which indicates a lack of buying pressure. The state of affairs now offers conflicting possibilities. It is evident that there is still some buying interest around these levels which makes the 26 EMA support a positive indicator.  Nevertheless the volume is low indicating that there may not be enough interest to push XRP to all-time highs. A sustained upward move could be supported by an increase in volume so traders should keep a watch on those levels.