SEC vs Ripple Case Turns 2: What Next for XRP Price?

The XRP price drifted upwards as investors reflected on the ongoing SEC vs Ripple case. Ripple rose to a high of $0.348, which was slightly above this month’s low of $0.3330. It remains about 15% below the highest level this month, giving it a market cap of more than $17 billion.

SEC vs Ripple case turns 2

The Securities and Exchange Commission (SEC) launched one of the biggest lawsuits in the industry on December 20th, 2020. It accused Ripple Labs and its top officials of selling securities to investors without following the right process.

Ripple has denied claims that XRP is a security. Instead, it has insisted that XRP is a normal cryptocurrency like Bitcoin and Litecoin. It has continued defending itself aggressively against the case.

The SEC and Ripple have had different victories along the way. The most recent victory by Ripple was a ruling that allowed its lawyers to have access to a speech by William Hinman, a former SEC director. Ripple argues that his speech will provide more evidence that the SEC knew that XRP was not a security.

It is still too early to predict who will win between the SEC and Ripple. Still, analysts believe that the XRP price will do well regardless of who wins in court. For one, the worst-case scenario will likely be that Ripple will be asked to pay a fine and change its business model. 

In most cases, stocks tend to do well after a major court ruling since it usually leads to more clarity for the future. The same situation will likely happen when the SEC vs Ripple case ends. 

Meanwhile, the XRP price will also react to the latest actions by the Federal Reserve. In its decision last week, the Fed said that it will continue hiking interest rates in the coming months. If this happens, the terminal rate will likely be at 5.1%.

XRP price prediction

The four-hour chart shows that Ripple price has been in a slow comeback in the past few days. It has managed to move above the important resistance level at $0.3460, the lowest level on November 21. The coin dropped below all moving averages while the Stochastic Oscillator pointed upwards.

Therefore, Ripple will likely continue rising in the coming days as the Santa rally gets underway. If this happens, the next key level to watch will be at $0.3600.