Ripple price staged a strong comeback this week after the developers won an important case in the United States.
Ripple’s big win vs SEC
Ripple (XRP) token rose for the third consecutive day and reached a high of $0.6430, 48% above its lowest point this month and 70% higher than its July low.
In a US court ruling, the judge overseeing the well-followed case ordered the company to pay a $125 million fine, much lower than the $2 billion that the SEC was seeking.
The court also placed an injuction on Ripple against doing some activities. In a statement, Attorney Jeremy Hogan, who has followed the case well, noted that it was a ‘big win’ for Ripple.
You might also like: Ripple CEO accuses SEC of ‘hypocrisy’ and confusing regulations
He also clarified other parts of the ruling, noting that Ripple can still sell most of its XRP and ODL tokens since they are not under the jurisdiction of the US. It can also sell XRP to institutions as long as it does so under an exemption to the registration.
I see lots of questions re what the injunction means for ODL sales. I don't see it changing the status quo AT ALL, for the following reasons:1. As Ripple has stated, the majority of its XRP and ODL sales are outside the U.S. jurisdiction and not subject to the ruling. Those… pic.twitter.com/3GimWEcp0c
— Jeremy Hogan (@attorneyjeremy1) August 7, 2024
Ripple’s big win triggered upside among other altcoins since it signals that they have a winning chance if the SEC sues. Just recently, the SEC backed down on claiming that cryptocurrencies like Solana (SOL), Cardano (ADA), and Polygon (MATIC) were securities in an ongoing case against Binance.
The most directly affected token in Ripple’s ruling was Stellar Lumens (XLM), a popular cryptocurrency with a market cap of almost $2 billion. Ripple and Stellar have a similar goal of solving the cash remittance issue by partnering with major institutions. Stellar’s founder, Jed McCaleb, was a Ripple co-founder.
XRP price could suffer a harsh reversal
I see lots of questions re what the injunction means for ODL sales. I don't see it changing the status quo AT ALL, for the following reasons:1. As Ripple has stated, the majority of its XRP and ODL sales are outside the U.S. jurisdiction and not subject to the ruling. Those… pic.twitter.com/3GimWEcp0c
— Jeremy Hogan (@attorneyjeremy1) August 7, 2024
Despite the ongoing excitement about the Ripple vs SEC ruling, there is a risk that XRP could suffer a reversal in the coming days.
Since a potential settlement between Ripple and SEC was expected, there is a chance that traders will start selling the news.
A good example of this is what happened when the initial ruling came out in June last year. At the time, the XRP price rose from $0.47 to a high of $0.9322. This rebound turned into a bull trap as the token resumed its downward trend and reached a low of $0.382 in July.
XRP price will need to rise above the key resistance point at $0.6586 (July 31 high) to continue its uptrend. Moving above that level will invalidate a double-top pattern whose neckline is at $0.3812. It will also raise the possibility of the token rising by 23% to $0.7490.
You might also like: XRP surpassed the $0.60 mark, but likely to face resistance
