Ripple Slows Down Above $0.55 Following SEC Verdict—Is a Rally Brewing For XRP?
Ripple price could be ready for a major rally if it surpasses this level.
Key Takeaways
- Ripple’s price surged 72% after a favorable SEC ruling.
- The $125M fine was 94% lower than the SEC’s demand.
- XRP’s next move may confirm a new bullish phase.
The past week has been a wild ride for Ripple’s (XRP) price. After plunging to $0.43, XRP quickly rebounded, climbing back to $0.57 with renewed strength, fueled by Judge Torres’ favorable ruling .
Now that Ripple’s drawn-out legal battle with the SEC is finally behind it, could XRP be gearing up for a decisive breakout?
Why Is The Ruling Bullish?
Ripple’s CEO, Brad Garlinghouse, and CLO, Stuart Alderoty, reacted positively to Judge Analisa Torres’ final judgment in the SEC lawsuit against Ripple. The judge ordered Ripple to pay a $125.03 million fine, significantly less than the nearly $2 billion demanded by the SEC. The court also imposed a permanent injunction against future institutional sales without SEC registration.
Garlinghouse highlighted the 94% reduction in the penalty as a sign that the court found the SEC’s initial demand excessive, viewing the judgment as a victory for Ripple and the crypto industry. Alderoty echoed this sentiment, expressing satisfaction with the decision and noting that the court dismissed the SEC’s “reckless” claims. Ripple appears content with the judgment and may not appeal, but it remains uncertain whether the SEC will challenge the ruling.
The XRP community welcomed the news with many positive comments, with the commonly seen sentiment summed up in a sentence: ” It’s finally over.”
XRP Price Analysis
On July 5, Ripple‘s price fell to $0.38, its lowest since March. It then surged by 72% to reach $0.652 by July 31 but quickly reversed after being rejected at descending resistance.
This marked another interaction with the descending channel’s resistance that has been in place since mid-July last year. The low on July 5 may signal the conclusion of a complex WXYXZ correction, with the subsequent rise potentially marking the onset of a new bullish phase.
The 34% decline from the August 5 peak followed the 0.786 Fibonacci retracement level, finding support at $0.48. The price rebounded, revisiting its previous high before another dip, setting the stage for two possible scenarios.
In the first scenario, an immediate rise to a new high around $0.67 or slightly higher would form a five-wave pattern, confirming the beginning of an uptrend. This could trigger a sustained rally, potentially pushing XRP above $1.
Alternatively, if XRP struggles to rise past $0.52, it may still be in a corrective phase, potentially leading to a decline toward the $0.40 level. If the price holds above this area, a new uptrend might still be in play, but a break below could invalidate the bullish outlook.
XRP Price Soars 20% on the Heels of SEC Legal Resolution: What’s Next For Ripple?
