In December 2020, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs, accusing it of selling unregistered securities XRP. However, a recent ruling by U.S. District Court Judge Analisa Torres showed that XRP sold publicly was not a security. This partial victory ruling has sparked speculation about whether XRP has become a preferred investment and has driven a sharp rise in the price of the token.
However, the SEC's lawsuit against Ripple will continue, and a jury will decide whether Ripple executives intentionally and illegally provided#XRPto institutional investors. While the recent ruling is encouraging for XRP investors, many cryptocurrency lawyers warn against celebrating too early. Stephen Palley, a partner at the law firm Brown Rudnick, pointed out that this ruling is just an individual case and does not establish a legal precedent. In addition, Judge Torres' ruling may face appeals and be overturned.
Therefore, Coinpedia advises investors to exercise caution and not invest at the current peak price, as a sudden reversal in price could lead to significant losses. Once Ripple finally defeats the SEC, investing in XRP may become more profitable.
There is uncertainty about the next move of XRP price. Although XRP broke through several key resistance levels and hit a high of $0.938, the price later reversed and showed a bearish trend. Currently, XRP price experienced profit-taking momentum around $0.94 and then quickly fell. The bulls’ goal is to prevent the price from retracing to the 38.2% Fibonacci retracement level below $0.63. If the price stays above $0.75, it will boost the bulls’ confidence and prevent the price from falling into the bearish channel. Another rise to $0.9 may lead to profit-taking by traders again. However, if the price continues to stay below $0.75, it may retest the support level of $0.6 and may delay the start of the next uptrend.