The SEC drops its appeal in the Ripple case, driving XRP up 15% to $2.56, with analysts predicting a surge to $7-$40.

Ripple CEO Brad Garlinghouse calls the SEC case a failed attack on crypto, celebrating a major legal victory for the industry.

The U.S. Securities and Exchange Commission (SEC) has dropped its appeal in the case against Ripple, paving the way for a final decision. The move has sent XRP soaring by 15%.

What Happened

The SEC has decided not to proceed further with its appeal against a lower court ruling in the case, a development that has major implications for Ripple and the broader cryptocurrency landscape. Earlier this year, a federal judge ruled that the SEC failed to adequately demonstrate why XRP should be classified as a security.

After a four-year legal battle, Judge Helenius issued a summary judgment in favor of Ripple on all three claims. The SEC had argued that Ripple sold unregistered securities in a 2013 email to an Italian journalist. However, Judge Helenius disagreed, stating that there was no evidence of an intent to defraud or engage in any other unlawful activity.

Despite losing the case, the SEC announced its intention to appeal the ruling to the Supreme Court. However, in a surprising turn of events, the commission has now decided against pursuing the appeal further.

Impact On XRP

The news has sent shockwaves through the cryptocurrency market, causing XRP’s price to surge by more than 15%. It hit a high of $2.56 and is now eyeing the $3 mark.

According to experts, XRP is showing some interesting price action, with ambitious targets being set for the future. If XRP follows a five-wave pattern, it could reach between $7 and $12 initially, and possibly even as high as $20 to $40 in the future.

If this happens, those who bought XRP during the recent bear market could see a huge return on their investment, potentially up to 1,610%.

What Is Next For XRP

According to technical analysis, XRP is showing signs of a bullish divergence in the lower time frames, suggesting that the selling pressure might be decreasing.

As seen in the chart above, XRP is approaching a crucial resistance zone at $2.40, which could determine the next leg of the move. A break above this zone could pave the path for a continuation of the recent rally, potentially targeting the $3.00 resistance level.

On the other hand, if sellers manage to push the price back below the $2.00 support, it could open the door for further declines in the short term.

Moreover, analysts at Finder are predicting that XRP could reach $7 by the end of 2023, with some analysts even setting targets as high as $40 for 2024.

Ripple CEO Reacts To SEC Case Dismissal

In a statement, Brad Garlinghouse, CEO of Ripple, expressed relief that the U.S. Supreme Court has declined to hear the SEC’s appeal in the case.

“This is the moment we’ve been waiting for,” Garlinghouse said.

He added that the SEC’s case was a failed attempt to expand its authority and negatively impact the market.

“It’s time for the SEC to turn the page and focus on using its powers to protect investors from fraud, as it was designed to do,” Garlinghouse said.

The case began in December 2020 when the SEC sued Ripple for allegedly selling unregistered securities in the form of its XRP token. The agency also accused Ripple of defrauding investors.

A federal judge ruled earlier this year that the SEC failed to adequately demonstrate why XRP should be classified as a security. The judge also criticized the SEC for waiting seven years to bring the case.

The SEC then announced its intention to appeal the ruling to the Supreme Court. However, in a surprising turn of events, the commission has now decided against pursuing the appeal further.

This development marks the final chapter in a long-running legal battle that has had major implications for the cryptocurrency industry.

As the case went on, several members of Congress spoke out against the SEC’s actions, arguing that the agency was attempting to stifle innovation in the cryptocurrency sector with its broad interpretation of securities law.

Some lawmakers also expressed concern that the SEC was not sufficiently focused on protecting investors from fraud.

In recent months, there has been a shift in tone from government officials, with a greater emphasis on fostering innovation in the cryptocurrency sector while still ensuring that investors are protected from scams.

Garlinghouse said he hopes this decision will encourage new legislation that provides clarity for the crypto industry and U.S. policy.

“We can be the crypto capital of the world if we want to be,” he said.

He also noted that the new leadership in government is taking a more rational approach to crypto regulation, which will hopefully lead to significant progress.