XRP News Today: Judge Rejects Ripple SEC Settlement Request XRP Drops 5%

Judge Analisa Torres has rejected a joint request from Ripple and the SEC for an indicative ruling, causing the price of XRP to drop to $2.09 before recovering slightly to around $2.10. The token saw a 5% dip following the news. This legal update has added fresh tension to the ongoing Ripple vs SEC case, which has been a significant point of interest for the cryptocurrency market.

XRP’s overall price trend remains bearish, with the coin continuing to make lower highs and lower lows, a pattern that signals weakness in the market. While small price jumps can occur even in a downtrend, a proper trend reversal would require XRP to start forming higher lows and eventually break past previous highs. At the moment, XRP is struggling to break through an important resistance zone between $2.19 and $2.20. If the price manages to move above $2.20 with a strong daily close, the next target area would be around $2.30 to $2.35. A breakout past this point would signal a much stronger bullish trend and could open doors for a rally towards $2.60.

On the downside, the key support zone to watch is between $2.05 and $2.10. If XRP falls below this, the next support would be around $1.92 to $1.95. Right now, momentum remains weak, with short-term gains appearing within a generally bearish market structure. For this bullish scenario to stay intact, XRP needs to hold above the $2.08 support area. If the price drops below this, it increases the risk of the market making a fresh low. If that happens, the focus would shift to the bigger support level around $1.79.

At the moment, while Bitcoin has already shown signs of forming five waves up, XRP has yet to do so. Until clearer signs of strength appear, experts are watching for signs of support holding and any move that could lead to a fifth wave upward. The denial of the settlement motion has significant implications for both Ripple and the broader cryptocurrency market. The judge's decision was based on Supreme Court precedent, which emphasizes that enforcement actions involving violations of federal law cannot be reversed solely through private agreement. The SEC had initially filed its lawsuit against Ripple in December 2020, alleging that the company raised funds through unregistered securities sales of its XRP token. In July 2023, Judge Torres ruled that while XRP sales on public exchanges did not meet the definition of securities, $728 million worth of XRP sales to institutional investors did fall under securities law.

The denial of the settlement motion suggests that the court is taking a strict stance on enforcement actions involving violations of federal law, which could have broader implications for the cryptocurrency industry. Investors and market participants will be closely watching the next steps in this legal saga, as the outcome could significantly impact the future of XRP and other cryptocurrencies. The legal battle between Ripple and the SEC has been ongoing since 2020, with both parties presenting their arguments in court. The outcome of this case could set a precedent for how cryptocurrencies are regulated in the United States. Ripple's Chief Legal Officer, Stuart Alderoty, posted on social media that the company has not yet determined its next steps. The SEC, on the other hand, has the power to formally drop their appeal and simply not respond to Ripple's appellate brief, which could give a boost to Ripple's legal position. However, the SEC declined to comment on the matter.