• SEC v. Ripple case dragged on, counsel Stuart Alderoty stated that the regulator does not have the power to label XRP a security. 
  • Investor sentiment turned bullish with rising support for Ripple through amicus curiae filings from industry giants. 
  • Analysts predicted a rally in XRP, eyeing the $0.40 level as the target for the altcoin. 

SEC v. Ripple case has significantly influenced XRP price since the beginning of the legal battle in December 2020. With no updates from the court, Ripple’s legal counsel’s statement defending XRP and its position as a non-security is doing the rounds. There is a spike in bullish sentiment among XRP traders and the altcoin is likely to print an extended rally. 

Also read: Bank of England Deputy Governor warns traders against exchange-issued crypto tokens

SEC has no power to label XRP a security: Ripple’s legal counsel lashes out

Ripple (largest public holder of XRP) has defended itself against the US Securities and Exchange Commission (SEC) for nearly two years now. The regulator accused Ripple of unregistered sale of securities, XRP tokens being the “security” in question. 

Ripple’s legal counsel, Stuart Alderoty lashed out at this and made a new statement. Alderoty was quoted as saying:

To be clear, the SEC hasn’t labeled XRP a security, nor does it have the power to do so. One Judge put it this way: the SEC can only ask the question and the court ultimately answers.

US SEC regulated XRP by enforcement, stifling innovation

The SEC’s approach to crypto regulation by enforcement has been criticized by the community of developers, traders and the entire cryptocurrency ecosystem. Several crypto and blockchain giants like Coinbase stepped forward to support cross-border payment settlement firm Ripple in its defense against the SEC. 

Nearly 16 crypto and blockchain proponent entities have filed amicus curiae briefs in support of Ripple and held the US SEC responsible for the damage to the crypto industry. The SEC’s regulation by enforcement has resulted in the delisting of XRP across cryptocurrency exchanges. 

XRP holders are awaiting re-listing of the altcoin across major cryptocurrency exchanges as the altcoin exchanges hands 90% away from it's all-time high of $3.40. 

Analysts predict extended bull run in XRP

XRP, the third-largest altcoin by market capitalization, could witness an extended bull run, according to analysts. Bob Mason, a technical analyst argues that XRP has bucked the bear market trend and needs to move through the $0.3593 pivot to target resistance at $0.3727. 

The expert has identified the first major resistance level R1 at $0.3727, second R2 at $0.3815 and $0.39. The third key resistance level for XRP price is R3 at $0.4038. 

XRP/USD price chart

XRP/USD price chart 

While the crypto market bleeds, XRP price has the potential to print an extended rally, yielding 14% gains for holders in the bear market. The analyst’s target for XRP price is $0.40. Mason believes that his bullish thesis would be invalidated if there is news of crypto platforms freezing withdrawals and filing for bankruptcy hurts trader sentiment. This could send XRP price to sub-$0.30 levels.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.

More Bitcoin News
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins. 

More Bitcoin News
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.

More Solana News
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP