Ripple (XRP) Price Prediction After SEC Lawsuit Ends

This article explores what to expect now that the SEC vs. Ripple case has ended.

The price of XRP has remained in a tight range as the recent momentum faded. It was trading at $2.4175 on Friday morning, down from this week’s high of $2.60.

The cryptocurrency reacted mildly to the recent decision by the SEC to end its litigation against Ripple Labs. The litigation started in December 2020 when the agency accused Ripple Labs of raising money illegally through selling unregistered securities.

Later, Ripple Labs secured a partial victory against the SEC when the judge overruling the case ruled that XRP was not a security. It was, however, forced to pay a $250 million fine after the court determined that some of the tokens sold to institutions violated the law. The SEC then appealed that ruling, seeking to overturn the judge’s interpretation of the law.

The price of XRP showed little reaction to the conclusion of this case because most market participants were expecting that to happen. Besides, during Donald Trump’s administration, the agency hinted that it would do away with some of the cases brought by the previous administration. It ended cases against other companies like Coinbase, Kraken, Binance, and Uniswap, meaning that it was just a matter of time for Ripple.

The XRP price has also wavered as investors anticipate the next big thing. In this case, the next big news will be an XRP ETF approval. Moreover, most analysts predict this will occur, given the court’s ruling that XRP is not a security.

The XRP ETF news will likely be a positive thing for the coin because it will lead to higher inflows. What remains unclear, however, is whether Wall Street investors will be willing to buy XRP and other altcoins. Recent data shows they have avoided Ethereum ETFs. As such, an ETF approval may become a “sell the news” situation.

XRP Price Technical Analysis

The daily chart above shows that the XRP price is at risk of further downside because it has formed a head and shoulders pattern. Its head section is at $3.4, while the shoulders and neckline are at $3 and $2. A H&S pattern is one of the most bearish signs in the market.

XRP price has also remained between the 23.6% and 38.2% Fibonacci Retracement levels. Therefore, the coin’s outlook is bearish unless it moves above the shoulders side at $3. A bearish breakdown will be confirmed if the XRP price drops below the neckline at $2. Such a move will see it move below the psychological point at $1.