The Ripple and SEC legal battle has seen a lot of action and is currently in the spotlight amid XRP inching up nearing its $0.70 forecast. Despite the partial wins the XRP parent company had over the United States Securities and Exchanges Commission, market sentiments have confirmed that the regulatory body intends to bring up an appeal that would affect the XRP forecast.
XRP showed a spike in its price on Saturday by 0.24%, and this ended the day session at $0.6229. The SEC regulator has been seen to threaten the XRP market price, and the looming appeal still remains a possible challenge for Ripple Labs as the legal battle has been the focal point for its market movements.
Ripple Labs and SEC legal battle implications
During the end of the week on Friday, XRP rallied by 0.02%, and following this was Saturday’s gain of 0.24%, regardless of no news on the Ripple Labs vs. the SEC legal trial. The steady market movements of XRP can be attributed to the growing scrutiny over the case.
Following news events on trial, the SEC is expected to appeal a court ruling on Programmatic Sales, and this development will hinder Ripple’s native coin from reaching its predicted $0.70 forecast by market experts. The short is attributed to the final proceedings of the battle this month.
Among the rulings made was the court order made on November 13 that requires both parties to complete related remedies discovery that’s supposed to be done by February 12, next year.
In light of a lower penalty ruling, the expectations of an SEC appeal could increase toward the Programmatic Sales ruling. Kraken has also had aggressive legal pressure from the SEC following charges for commenting on customers’ digital and fiat assets with their own funds.
The SEC had sued Kraken for its role in acting as an exchange, broker, dealer, and clearing firm for digital currency Securities.
Moreover, the regulator listed 16 cryptocurrencies as securities, and Ripple was absent because of the Programmatic Sales ruling.
XRP market movements
Ripple Labs and the SEC have joined forces in distributing settlements related to the XRP sales to institutional investors. A ruling by Judge Analisa or a possible settlement could affect investment appetite for the digital token, and investors might stop adjusting their portfolios with XRP.
The regulatory body is currently eying a settlement penalty of $770 million that is part of the XRP sales for institutional investors.
However, the legal case could favor a significantly lower number as legal experts speculate that the amount could reduce to levels lower than the Ripple Labs $150 million legal bill. Additionally, the Supreme Court ruling on the US Securities and Exchange Commission states that the regulator has jurisdiction over sales made in the US. As such, the SEC should subtract the Ripple sales made to the institutional investors who reside outside the United States.
Ripple’s native coin has showcased an interesting price action in its market trend as it remained above the 50-day EMA as well as the 200-day EMA. This has confirmed a bullish prediction for the digital asset. A fall through the 50-day EMA could signal a bear run to the $0.5835 level, which is also XRP’s support price.
The 14-day RSI recorded 51.69 and signaled that XRP could break to levels above $0.6354, which is the marked resistance level. This could be a prior move towards the oversold zone.
At the time of writing, XRP is currently tagged at $0.622 with a weekly gain of 1.39%. However, its trading volume has reduced by 45.06% in the past 24 hours, according to CoinMarketCap.
