Ripple Lawsuit Update: XRP Falls Amid SEC Battle, What’s Next?

The XRP price falls amid legal upheaval. Here, we look at price fluctuations, critical levels, and forthcoming major events in the ongoing court battle.

Amid ongoing legal disputes between Ripple and the U.S. Securities and Exchange Commission (SEC), the price of XRP falls below $0.49 today. 

The recent decline in XRP reflects investor concerns amid regulatory uncertainty and the pessimistic market sentiment observation. 

Amid the legal commotion, investors demand clarification regarding the future of XRP, the native cryptocurrency of Ripple, as the lawsuit progresses.

Investor Uncertainty Drives the Decline of XRP

As the legal processes between Ripple and the SEC intensify, investor opinion about XRP becomes more concerned. 

Today, May 13, marks a pivotal moment in the lawsuit, as parties and third parties are set to file omnibus letter motions to seal all materials related to the ongoing legal briefing, including briefs, declarations, and supporting exhibits. 

However, both parties will have the opportunity to submit their motions by May 20.

An increasing number of legal complexities precipitate a substantial decline in XRP, indicating that investors are apprehensive about the future course of the cryptocurrency. 

The imminent ambiguity regarding the legal status of Ripple has a detrimental impact on the market performance of XRP, as investors eagerly await resolution amid the legal maze.

In light of legal documents and opposing viewpoints, the judiciary is preparing to deliberate on the potential sanction Ripple might incur for purported infractions of securities legislation in the United States. 

In addition, the lawsuit’s outcome is of the utmost importance, as the SEC is seeking an injunction prohibiting Ripple from selling XRP to institutional investors and imposing a $2 billion penalty.

Conversely, Ripple responds by challenging the SEC’s assertions, placing particular emphasis on sales to accredited investors and the characteristics of ODL (On-Demand Liquidity) contracts. 

However, the SEC maintains its unwavering position on its accusations, emphasizing the possible legal consequences Ripple’s conduct could face in the court’s opinion.

What’s Next?

Industry professionals eagerly await the potential appeal of the SEC concerning the XRP Programmatic Sales ruling as the legal proceedings advance. 

This action highlights the persistent ambiguity surrounding Ripple’s legal dispute and the repercussions it may have on the cryptocurrency market as a whole. 

Meanwhile, due to investor concerns and regulatory scrutiny, the future of XRP remains uncertain, and it is awaiting resolution amidst a volatile legal environment. 

However, let’s examine the current XRP price and a few pivotal levels recommended by an industry-leading analyst.

Prominent cryptocurrency analyst Dark Defender recently published an analysis indicating that the price dynamics of XRP are ripe for action. 

The focus shifts to forthcoming levels as the coin trades below the critical support level this week. 

Notably, Dark Defender has identified $0.4975 and $0.4623 as critical support and resistance levels, respectively, are $0.5330 and $0.6044. 

The analysis delineates the phases of XRP’s price fluctuations, with $18.22, $5.85, and $1.88 as targets. 

However, the $0.3917 level of support continues to be a significant factor to be mindful of. 

Whether XRP revisits lower levels this week is contingent on its closing price remaining above $0.4975 and the blue level (as indicated in the price chart below).

As of this writing, the price of XRP has marginally recovered to $0.5011, a decrease of 0.53%, whereas its trading volume has increased by 93% to $766.05 million. 

In the last 24 hours, the cryptocurrency peaked at $0.5066 and fell to $0.4879. 

XRP Open Interest increased 3.71% from yesterday to $569.15 million, according to CoinGlass Data, notwithstanding the recent decline.