CME Futures Launch and SEC Appeal: What’s Next for Ripple (XRP)

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Ripple (XRP) has been struggling to maintain upward momentum, with its price hovering around $3.10 and recently dipping to an intra-day low of $3.08.

However, the major factor contributing to this decline is the ongoing legal battle between Ripple and the SEC. The uncertainty surrounding the outcome of the case, especially with the SEC’s appeal, has led to investor hesitation, resulting in selling pressure on XRP. This legal cloud continues to dampen market sentiment, making investors cautious.

In addition to the legal issues, uncertainty around the CME Group’s XRP futures launch is also weighing on XRP’s price. The accidental beta release, combined with a lack of regulatory approval, has left the market confused and unsure about the future of XRP in the futures market. As a result, these combined factors are contributing to XRP’s downward trend, keeping investors on edge and fueling price drops.

  • Ripple’s price has dropped to $3.08 due to ongoing uncertainty from the Ripple vs SEC case.
  • Investor hesitation and selling pressure are linked to the SEC’s appeal and legal uncertainty.
  • Uncertainty around the CME Group’s XRP futures launch is further contributing to XRP’s price decline.

CME Group’s Potential Launch of XRP and SOL Futures: A Boost for Institutional Adoption and XRP Price

As we mentioned above, the decline in the XRP coin was a concern for many, especially given its ongoing legal issues with the U.S. Securities and Exchange Commission (SEC). However, recent news about the CME Group’s potential launch of XRP and SOL futures on February 10 has sparked some optimism.

It should be noted that the beta version of their website accidentally revealed these upcoming products, showing that XRP and SOL futures could soon be available for trading. These contracts are designed to allow traders to manage their exposure to XRP and SOL without needing to use crypto wallets, and they would be settled in USD.

The futures would be available in both standard and micro-sized contracts, providing more flexibility for investors. However, the launch is still pending regulatory approval, so there are uncertainties surrounding this timeline.

Therefore, the potential launch of XRP futures could positively impact XRP’s price by increasing institutional interest and market liquidity. This may lead to more trading opportunities, potentially stabilizing its value and attracting more investors, despite ongoing regulatory challenges.

Impact of CME Futures on XRP:

  • The potential launch could increase institutional interest and market liquidity.
  • More trading opportunities could stabilize XRP’s value and attract more investors.
  • Regulatory approval remains uncertain but would significantly affect XRP’s future.

Impact of SEC Appeal on Ripple Labs, XRP Price, and the Future of Cryptocurrency Regulations

On the other hand, Better Markets has filed a brief supporting the SEC’s appeal against Ripple Labs, arguing that the 2023 court ruling was wrong. The court had ruled that Ripple’s sales of XRP to retail investors didn’t break U.S. securities laws, but the SEC and Better Markets believe this decision misinterpreted the Howey Test, which determines what counts as an investment contract.

The SEC had sued Ripple in 2020, claiming the company raised $1.3 billion through unregistered XRP sales. While Ripple won part of the case, the company was still held liable for $125 million in institutional XRP sales. Better Markets criticized the ruling, saying it left retail investors unprotected and created a loophole benefiting institutional investors.

Ripple’s financial situation remains strong, with the value of its XRP holdings increasing significantly. The company’s growing influence is also rumored to be tied to political connections, especially with Ripple CEO Brad Garlinghouse meeting with Donald Trump. There’s speculation that a settlement with the SEC could be coming soon, especially after Mark Uyeda became Acting SEC Chair, as he is seen as more crypto-friendly.

Consequently, the ongoing legal battle and SEC appeal could create uncertainty for XRP’s price. If the SEC wins, it may result in stricter regulations, potentially lowering XRP’s value. However, a favorable outcome for Ripple might boost investor confidence and increase the price.

XRP Price Chart - Source: Tradingview

XRP/USD Price Analysis

XRP/USD is currently trading at $3.089, down 0.29%, as the price struggles to maintain upward momentum within a symmetrical triangle pattern. The formation suggests market indecision, with buyers and sellers awaiting a breakout for direction. The 50-period EMA at $3.133 is acting as a dynamic resistance level, keeping bullish attempts in check. Immediate resistance lies at $3.201, while support is observed at $3.037. A break below this level could expose XRP to further declines towards $2.979. Conversely, a bullish breakout above $3.201 could trigger an upside rally, targeting $3.281 and beyond. Traders should monitor volume spikes for potential breakout confirmation.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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