SEC Drops Appeal Against Ripple, XRP Price Increases by 13%
The US Securities and Exchange Commission (SEC) has dropped its lawsuit against Ripple, concluding a four-year legal battle that impacted the cryptocurrency sector.
Key Points
- The SEC initially filed charges in 2020, alleging Ripple sold XRP as an unregistered security.
- Ripple CEO Brad Garlinghouse announced the resolution on social media, marking it as a victory for Ripple and the crypto industry.
- The case resulted in approximately $15 billion in losses for XRP holders but established that XRP is not classified as a security.
- The SEC faced criticism and was sanctioned for discovery abuses during the proceedings.
- Garlinghouse criticized the SEC’s approach under Chairman Gary Gensler, asserting it targeted the broader crypto market with flawed arguments.
- With political shifts favoring pro-crypto positions, there is growing interest in regulatory clarity for cryptocurrencies.
XRP Market Impact
- XRP derivatives volume increased by 92.80% to $9.28 billion; Open Interest rose by 14.35% to $3.63 billion.
- XRP Options volume surged by 130.58% to $2.58K, with Options Open Interest climbing 42.05% to $566.46K.
- XRP price spiked to around $2.59 following the SEC's withdrawal, reflecting a 13% increase within a day.
- Technical analysis indicates potential resistance levels at $2.5750 and $2.6279, with prospects of reaching new highs if bullish momentum continues.
The Moving Average Convergence Divergence (MACD) indicator suggests a strong bullish trend for XRP, indicating potential further price increases.