Despite a slight drop in value in the past 24 hours, the asset is still registering modest gains since the start of today.
XRP currently has its eyes set on the pre-FTX price territory at $0.45 amid several bullish speculations that have emerged on the legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). However, the asset’s goal to recapture the $0.45 territory is significantly hinged on its reclamation of the $0.42 zone.
Despite the absence of an important court decision on the Ripple case in the past few weeks, speculations on the outcome of the litigation have gained steam, as several high-profile individuals and crypto proponents have asserted that Ripple has a better chance at winning the case.
Notably, LBRY, a blockchain-based payments network, secured a significant victory against the SEC after the November 7 ruling in favor of the regulatory watchdog. The Judge recently noted that the previous November 7 ruling against LBRY Credits (LBC) does not apply to secondary sales of the token.
The court recently established a standard that LBC, the underlying asset of the investment contract, did not constitute a security. The standard was committed on paper by the SEC. Following the enacted standard, LBRY and other individuals have claimed that XRP can also not be classified as a security. Consequently, calls for Coinbase to relist XRP emerged.
Moreover, attorney John Deaton recently argued that even if Ripple once sold XRP as a security, it still does not make the token in itself a security. According to him, “XRP remains a digital code.” He cited previous cases when Bitcoin was once packaged as a security, but now fully classified as a non-security.
Meanwhile, Ripple’s quarterly report for Q4 2022 has also revealed some remarkable achievements, contributing to an increase in investors’ interest. On-chain transactions on XRPL in Q4 2022 increased to 106M notwithstanding a massive decline in trading volume within the broader crypto market.
Amid these bullish speculations and favorable reports, XRP looks primed to recapture the lofty position at $0.45. Despite being subjected to the bearish headwinds observed in the broader market, XRP aims to establish a comfortable position above the $0.41 level, currently changing hands at $0.4111 as of press time.
The asset is looking to conquer the $0.42 zone which would be used as a launchpad for a rally to $0.45. Scaling through the resistance points at $0.4166 and $0.4234 would provide enough support to the bulls for the rally. XRP recently broke a trendline it’s been caught in since last November, as disclosed by analyst Crypto Tony. Notwithstanding, he highlighted the asset’s weak position at this point.
