Ripple’s XRP neared the $1 mark on Sunday. This resurgence comes amid the potential resolution of Ripple’s legal battle with the US Securities and Exchange Commission (SEC).
The unresolved nature of the SEC and Ripple’s protracted legal dispute has led to speculation on whether a final verdict might be reached this week. In a previous report, it was noted that Judge Analisa Torres, who presides over the case, ruled that XRP sales on the exchange are classified as non-securities.
However, the ruling favored the SEC regarding institutional investors, as the judge deemed XRP an unregistered security in this context. Consequently, the SEC demanded a $2 billion penalty from Ripple. While Ripple has contested the fine, Judge Torres must decide on the final amount the company has to pay and whether to issue an injunction.
It is important to note that an injunction might prompt the SEC to appeal Judge Torres’ Programmatic XRP ruling. Alternatively, an injunction could prohibit XRP in the US, potentially hindering the cryptocurrency’s growth.
In the first scenario, there is uncertainty about whether the SEC will appeal due to related court rulings involving other crypto platforms. For example, in the case of Terraform Labs and Do Kwon, Judge Rakoff declared TerraUSD and LUNA as securities. Before this ruling, Judge Rakoff criticized Judge Torres’ decision on Programmatic Sales, stating that she erred in declaring XRP was not a security when sold on exchanges.
This ruling partially favored Ripple, leading to speculation about a potential appeal. However, the SEC’s decision not to appeal may also have been influenced by a ruling in the case between the SEC and Binance. In that case, Judge Amy Berman Jackson ruled against the SEC arguing that BNB sales did not qualify as securities under the Howey test.
Meanwhile, XRP has managed to stay above the $0.5920 support zone, which is an important foundation for its recent upward trend.
If XRP continues to build its current momentum, it will reach several critical resistance levels. The immediate resistance is round $0.6135. However, the first major hurdle is at $0.62, which is significant as it aligns with the 76.4% Fibonacci retracement level.
