XRP price wiped out all the gains made on Wednesday following an unexpected decision by the US Securities and Exchange Commission (SEC) to cancel a planned closed-door meeting with Ripple.
The outcome of the Ripple versus SEC case is critical for the entire cryptocurrency industry. This decision is expected to shape the regulatory framework for future digital assets investments.
Ripple Price Plummets after SEC Halts Settlement Talks
After a remarkable 13% climb on Wednesday, the XRP price has whitewashed all the gains. It succumbs to the SEC’s move to cancel a much-awaited closed-door meeting with Ripple on July 18.
Former SEC lawyer Marc Fagel recently highlighted that Ripple and the SEC have had “about 150 of these nearly-weekly meetings since the case started.”
It remains anyone’s guess why the regulator canceled the meeting. Nevertheless, as the wait continues, it is worth noting that the SEC’s Sunshine Act notice listed crucial regulatory issues in the agenda.
Among them are the settlement of administrative proceedings, injunctive actions, and the possibility of resolving litigation claims for clarity in the Ripple case. Top SEC commissioners and Ripple officials were initially set to attend amid the regulator’s claims that the XRP token should be categorized as a security.
Ahead of the meeting, community members anticipated a positive outcome, potentially providing clearer guidelines in the case. As July remains an important month for the case, some speculated that this would be the meeting where Ripple settles with the SEC.
“This Thursday, July 18th, the SEC is having a closed-door meeting to discuss the items underlined below. Hmmm….Dare I say Ripple Settlement?” pro-XRP founder of Dizer Capital, Yassin Mobarak, speculated in the run-up to July 18.
In a Wednesday interview with Bloomberg, Ripple CEO Brad Garlinghouse also expressed the same optimism without any timelines. “We expect a resolution very soon but can’t predict exactly when the judge will rule there,” he said.
Read more: How To Buy XRP and Everything You Need To Know
Nevertheless, optimists still cling to the July 31 prediction by another XRP advocate, attorney Fred Rispoli. According to the legal expert, the case could still end at the end of the month after July 13 passed.
“July 31, although I could see her doing July 13 to be poetic,” Rispoli responded when asked about possible dates for the ruling to come in.
Meanwhile, Ripple and the SEC continue to debate about the penalty for Ripple’s alleged violation of securities laws. While the regulator pushes for a fine as heavy as $2 billion, Ripple challenges that $10 million would do.
Ripple Price Outlook Amid Settlement Woes
XRP price Thursday’s whiplash of Wednesday gains comes amid uncertainty over the SEC’s sudden move. Nevertheless, not all is lost as bulls continue to lead the market. The correction could provide a good entry point for sidelined traders before the next leg up.
Looking at the Relative Strength Index (RSI), the momentum indicator has corrected after its foray into overbought territory. Its current level above 50 indicates strong bullish activity, further supported by the Moving Average Convergence Divergence (MACD). The MACD’s position above its signal line (orange band) shows buying pressure exceeds seller momentum.
The ensuing buying pressure could catalyze recovery if late bulls capitalize on the correction to buy XRP at discounted rates. Nevertheless, only a candlestick close above the supply wall’s upper boundary of $0.6260 would confirm the continuation of the uptrend.
Read more: Ripple (XRP) Price Prediction 2024/2025/2030
Traders looking to take a long position on the Ripple token should consider waiting for a stable break and close above the mean threshold of the supply zone at $0.6009.
Conversely, the XRP price could extend the fall if seller momentum exceeds buying pressure. A candlestick close below $0.4182 would invalidate the bullish thesis.
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