The post Ripple’s Ongoing Battle Leaves XRP at Fear Zone- Will XRP Price Rebound? appeared first on Coinpedia Fintech News
The crypto market is currently watching a dramatic show led by the SEC and Ripple’s ongoing case. Though several altcoins are currently on a declining path recently, Ripple’s XRP has been subjected to much uncertainty. The ongoing legal tussle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs has cast a pall over the XRP coin, pushing it into what some investors term the “fear zone.”
Ripple May Face Consequences
A key ramification of the lawsuit is the considerable constraints imposed on Ripple’s access to its XRP reserves. Historically, Ripple held a large volume of XRP, periodically selling off chunks to finance its operations.
However, the onset of the SEC lawsuit has led to serious restrictions on Ripple’s access to its reserves. The SEC has alleged that Ripple’s sales of XRP from its reserves were essentially a means of fundraising, bypassing conventional avenues such as initial public offerings (IPOs) or venture capital. This situation poses risks to the company’s liquidity and its capacity to maintain operations at pre-lawsuit levels.
Notably, while Ripple has experienced growth in other global regions, the United States remains a pivotal market for any fintech firm. The long-term viability of Ripple significantly depends on its freedom to operate in the US market. The persisting lawsuit and the potential regulatory shifts it may usher in have introduced a level of uncertainty regarding this freedom.
Despite the storm clouds, there are reasons to believe in a potential XRP price rebound. Ripple Labs has been fighting tooth and nail against the SEC allegations and managed to win some minor victories. If Ripple can secure a decisive win or even a favorable settlement, it could provide the impetus for a strong XRP rebound.
What’s Next For XRP Price?
This week commenced on a subdued note with no fresh revelations from the ongoing SEC versus Ripple legal battle to take into account. Despite the absence of court proceedings to evaluate, the buzz surrounding the SEC versus Ripple case has been intensifying.
As of writing, XRP price trades at $0.42, declining over 1% in the last 24 hours. Analyzing the 4-hour price chart, XRP price is under intense bearish pressure after getting rejected at EMA50 resistance near $0.43.
However, there is strong buying pressure from bulls at $0.41, defending the immediate support level. If bulls push the XRP price above $0.43, a smooth upward rally is expected toward the $0.45-$0.46 resistance level.
On the bearish side, XRP can experience a sharp decline if sellers initiate a spike in short positions below $0.41, which will slump the altcoin below its 38.6% Fib level at $0.37.