The XRP price has skyrocketed since district judge Analisa Torres gave a summary judgment in the legal struggle between Ripple and the Securities and Exchange Commission (SEC).
The price has been consolidating after originally exploding by over 100% on the day of the decision, but encouraging news might be the spark for a breakthrough. Following the partial triumph in the court case, Ripple has gotten significant support from a variety of sources. Notably, both Republican and Democratic US politicians have expressed support for the fintech firm, as have several attorneys. Stuart Alderoty, Ripple’s Chief Legal Officer (CLO), even suggested that US financial institutions may use XRP for cross-border payments.
Ripple’s Legal Victory Shakes Up US Crypto Policy
Ripple’s legal win has caused a seismic shift in US politics concerning cryptocurrencies. Ron Hammond, Director of Government Relations at the Blockchain Association, emphasized the impact of the ruling on US crypto policy. He stated that while it wasn’t a complete win for Ripple, the SEC’s arguments have been significantly weakened. Democrats are now motivated to take action after years of supporting the SEC and its enforcement actions.
The Democrats, who are currently in power and are the majority party, may exert influence over Gary Gensler, the chairman of the SEC, as a result of this political change in Ripple’s favor. This influence may prevent an appeal and help the US Congress pass comprehensive crypto legislation without having any negative effects on the price of XRP.
US Representative Ritchie Torres, a prominent figure in the Democratic Party, applauded the decision and acknowledged that digital assets are not securities in themselves but can be part of investment contracts, which are securities. This endorsement from a lawmaker signifies a change in perspective toward digital assets and adds credibility to Ripple’s cause.
Judge Sarah Netburn’s order for a settlement conference, scheduled 6-8 weeks in advance, has raised hopes of a potential settlement between Ripple and the SEC. If successful, this settlement could mark the end of the court case and remove the possibility of an SEC appeal, providing an additional boost to XRP’s price prospects.
Ripple’s Chief Legal Officer, Stuart Alderoty, expressed optimism about engaging US financial institutions in discussions about adopting Ripple’s On-Demand Liquidity (ODL) product, which utilizes XRP for cross-border payments. This could further reinforce the potential for XRP and contribute to its price growth.
XRP Price Analysis And Technical Outlook
From a technical perspective, the XRP price displays a bullish trend. After a brief correction from the 38.2% Fibonacci retracement level at $0.68, the XRP bulls have entered the market at the 23.6% Fibonacci retracement level. On the shorter time frames, the 1-hour chart shows a clear uptrend since Monday. If the resistance at $0.82 is surpassed, a rapid rally towards the 38.2% Fibonacci retracement level at $0.93 is highly likely, with potential further resistance at $1.13.
Egrag Crypto, a well-known analyst on Twitter with over 31k followers, predicts a substantial rise in the XRP price. Based on the Bermuda Triangle chart pattern, the forecast suggests that XRP could extend its rally to the range between $1.6 and $1.8 on the weekly chart. The analyst warns of a fierce battle between bulls and bears but envisions the token facing a “typical Stratosphere,” where it could either reach new heights or stabilize for some time.
The charts indicate that banks, hedge funds, and financial institutions may start embracing XRP alongside the XRP Army in the ‘Blue Ocean,’ potentially paving the way for a parabolic climb towards the ambitious $27 price target.