XRP Drops Back to 2 USD as Legal Dispute with SEC Continues

XRP fell significantly on Thursday following new developments in the ongoing legal dispute between Ripple Labs and the Securities and Exchange Commission (SEC). Judge Analisa Torres's decision to deny Ripple and the SEC's joint motion for a ruling on the guidance has hindered the bounce back of XRP's price as it attempted to break down the nearest resistance level of $2.23. The main unresolved issues regarding Ripple Although the SEC has withdrawn its appeal, indicating that the main legal conflict between the two sides may be coming to an end, Judge Torres's ruling emphasizes that certain procedural issues still need to be addressed, including the necessary court approval. In her ruling, she clarified that private agreements cannot replace public court decisions, stating, "The parties do not have the authority to agree to be bound by the final judgment of the court... They have never done so here." In response to this ruling, Ripple's legal director, Stuart Alderoty, used the social media platform X (formerly known as Twitter) to convey that the situation is now in Ripple's hands. The CEO pointed out that the court has given them two options: either to dismiss the appeal related to the organization's historical stock sales or to continue the appeal. Regardless of the choice, Alderoty emphasized that the legal status of XRP as not being a security remains intact, assuring stakeholders that everything is proceeding normally. Experts' reactions to Torres' decision Legal expert Fred Rispoli also considered the impacts of the ban, stating that it would not affect XRP in the secondary market or impact the potential exchange-traded fund (ETF) waiting for SEC approval. He noted that the injunction is just a court document and emphasized that the likelihood of Judge Torres summoning Ripple and the SEC back to court is very low unless the SEC believes that Ripple is violating the terms of the injunction. Rispoli continues to question whether the SEC has the authority to grant Ripple the necessary exemptions to alleviate any restrictions imposed by the ban, arguing that such actions fall within the executive powers of the SEC. Ripple asserts that it has adjusted its operations to comply with the court ruling, particularly regarding previous sales transactions to institutional investors. Alderoty's use of the term "historical institutional sales" in his recent statement indicates a shift in how both parties may approach future transactions, signaling a potential solution that allows for the sale of XRP to institutions in a manner acceptable to the SEC. The price of XRP could reach 5 dollars. Despite this temporary fall, market analysts remain optimistic about the future of XRP. Cryptocurrency analyst CryptoBullet recently noted that the two-week price chart of XRP resembles the patterns seen in 2017, including a significant accumulation phase and the potential for a breakout. With this historical context, the expert predicts that the price of XRP will surge, forecasting a new record high ranging from $4.50 to $5.40 for this cryptocurrency.