Ripple Labs has won a major victory in its ongoing legal battle with the United States Securities and Exchange Commission (SEC). The victory led to an immediate and significant increase in the price of XRP, which surged 25% following the court’s decision on August 7.

The case has caused a lot of stir because it could change the way the SEC regulates cryptocurrencies.

Ripple’s legal dispute with the SEC has been a major source of uncertainty for XRP holders and the wider cryptocurrency market.

Following the ruling, XRP’s price surged 25% to $0.64. Despite the price increase, XRP, the seventh-largest cryptocurrency by market cap, has not changed much overall this year.

The ruling comes at a time when cryptocurrencies are losing value due to risk aversion in global markets.In July 2023, Judge Analisa Torres made an important decision.

She ruled that XRP was a security only if it was sold to sophisticated institutional investors, a ruling seen as a victory for the cryptocurrency industry.

The case is a key part of the SEC’s ongoing pursuit of cryptocurrency exchanges and issuers for offering unregistered securities.

On Wednesday, Judge Torres granted the SEC’s request to block Ripple from selling unregistered XRP tokens to institutional investors. But she rejected the SEC’s request that Ripple return profits from those sales.

In ordering a $125 million fine, she ruled that the case did not involve fraud or embezzlement and that the SEC had failed to prove that investors actually lost any money as a result of Ripple’s actions.

XRP price surges on positive news

The court’s decision had a profound impact on the rise in XRP prices. Following the announcement of the ruling, XRP enjoyed one of its strongest gains this year, rising 27% to $0.6406. This rapid rise highlights the market’s positive reception of the legal outcome and renewed confidence in Ripple’s future.

Ripple CEO Brad Garlinghouse expressed satisfaction with the ruling, highlighting that the SEC's request for a fine was reduced by 94%. He said: "This is a victory for Ripple, the industry, and the rule of law. The SEC's resistance to the entire XRP community has disappeared." This sentiment was echoed throughout the cryptocurrency community, and many people believe that this is a critical moment for XRP.

XRP will show a bullish trend

At press time, XRP is trading at $0.5874. The 50-, 100-, and 200-period simple moving averages (SMAs) are key. The 50-, 100-, and 200-period SMAs are $0.5179, $0.5155, and $0.5572, respectively.

The current price has moved above these moving averages, which is a bullish sign indicating that a rebound could be brewing.

MACD is showing a positive divergence with its line at 0.0234 and the signal line at 0.0109. The histogram value is 0.0124, which means that buying pressure is building up.

The MACD line has risen sharply above the signal line, supporting the possibility of continued rise. The OBV value is 466.387 million, reflecting that the recent price increase has been accompanied by a significant increase in trading volume.

Ripple’s legal victory sets the stage for an “inevitable rally” for XRP. With regulatory uncertainty significantly reduced, XRP’s price could surge to between $4 and $8.

The latest clarity on XRP’s legal status removes a major piece of the suspense that has dogged XRP’s price for years. With this clarity, investors and market participants are more likely to view XRP as a viable investment, potentially driving demand and prices higher.

technical analysis

From a technical perspective, XRP’s price surge broke through several key resistance levels following the court ruling. Prior to the ruling, XRP had struggled due to the broader economic uncertainty. The recent surge has not only recovered those losses, but also set the stage for XRP to rise further.

If the $0.65 resistance level is breached, XRP could reach $1 and even higher. The use of the Fibonacci retracement tool suggests that XRP could retest higher price levels as investor sentiment becomes increasingly bullish.

However, it is important to note that despite the positive short-term outlook, the cryptocurrency market remains volatile. Future price action will depend on a range of factors, including broader market conditions, regulatory developments and Ripple’s business progress.

simply put

Ripple's major victory in its lawsuit against the SEC has driven a sharp rise in the price of XRP, with a 25% increase highlighting the positive market reaction. The ruling not only alleviates a major uncertainty facing XRP holders, but also lays the foundation for potential future gains. At the same time, the court's decision to significantly reduce the fine and clarify that XRP is not a security in certain circumstances has boosted investor confidence.

In summary, I believe that as the impact of Ripple's victory continues to emerge, XRP's upward momentum may further increase, showing a bullish trend in the short term, and the price is expected to rise sharply above the resistance level. In the long term, we should pay more attention to broader market trends and regulatory changes. It is expected that the price will reach a new high after breaking through the $0.65 resistance level in the future.