XRP Faces Legal Crossroads as SEC Lawsuit Nears Decision

XRP, the cryptocurrency associated with Ripple Labs, has been trading at $2.12 while facing both legal challenges and technical resistance levels. The digital asset may be set for a major shift depending on the outcome of its long-running lawsuit with the U.S. Securities and Exchange Commission (SEC).

The SEC accused Ripple Labs of conducting an unregistered securities offering, which has limited XRP’s growth in the American market. Many exchanges delisted the token when the lawsuit began, creating a barrier to widespread adoption despite the token’s utility in cross-border payments.

According to Paul Barron, the lawsuit may reach its final ruling by April 16. This upcoming decision has investors watching closely for signs of how XRP might perform if freed from legal constraints. Bitwise Chief Investment Officer Matt Hougan believes many in the crypto market have “written off” XRP due to its legal troubles. He suggests that a favorable resolution could lead to a market correction, allowing XRP to demonstrate its full potential in global finance.

Unlike Bitcoin and Ethereum, which have seen major institutional adoption, XRP has remained restricted by regulatory uncertainty. Japan has already shown strong confidence in XRP, surpassing Ethereum in Japanese investor holdings. SBI Holdings has been leading this adoption, integrating XRP into its digital banking system. Paul Barron noted that SBI’s approach with XRP resembles Michael Saylor’s strategy with Bitcoin, involving “strategically accumulating and positioning it for long-term institutional use.”

The price of XRP has been showing some positive movement recently. After dropping to around $1.90, it started a recovery and is approaching the $2.250 resistance zone. Technical analysis shows a short-term rising channel forming. The price is currently trading below $2.1850 and the 100-hourly Simple Moving Average. If XRP breaks above the $2.250 resistance, it could continue upward to test $2.350 and potentially reach $2.420. However, if XRP fails to clear the $2.250 resistance, it might decline again. Support levels to watch include $2.150, $2.120, and the psychologically important $2.00 zone.

Bitwise has filed for an XRP exchange-traded fund (ETF). While Hougan did not reveal specific details about their filing progress with the SEC, he expressed confidence in the asset’s future. “We don’t file for ETPs for fun. We file for them because we think they can launch, and we think there is an audience, and we think it’s an important asset,” Hougan explained. If the SEC case concludes favorably for Ripple, several positive developments could occur. These include re-listing on major U.S. exchanges, new institutional investment flows, and expanded adoption in banking systems.

At press time, XRP trades at $2.12, maintaining a position above the critical $2.00 support level. Traders are watching both legal developments and technical indicators for signs of the next major price movement. The outcome of the SEC lawsuit will be crucial in determining XRP’s future trajectory, as a favorable ruling could unlock significant demand and propel the cryptocurrency to new heights.