XRP seeks to reclaim the $0.40 price level, but its success on this journey looks hinged on updates from the FTX saga and Ripple’s case with the SEC.
XRP has struggled to break free from the bears since its drop from the $0.40 zone on November 8. Notwithstanding, it appears the asset’s journey to reclaim the $0.40 price point depends on the developments surrounding the FTX saga and Ripple’s legal tussle with the United States Securities and Exchange Commission (SEC).
Following the escalation of the FTX situation, the community witnessed a market-wide bloodbath which saw XRP relegated to lows last noticed in August. However, despite a series of comebacks staged, the asset has failed to recapture the $0.40 level, as it faces rejection at each attempt amid worrying revelations surrounding the FTX saga.
Positive Developments Surrounding FTX and the SEC Case Could Be XRP’s Launchpad
However, the asset appears to have shown some newly-found strength of late, as the FUD dumped into the market from the FTX implosion fades gradually, with the recent bankruptcy hearing for the firm revealing some appealing developments. Moreover, Ripple’s legal battle with the SEC is near its end, with the most recent updates favouring the blockchain entity.
Recall that disclosures on FTX’s reorganization and selloff plans surfaced during its recent bankruptcy hearing held Tuesday at the United States Bankruptcy Court in Delaware. Per reports, FTX has revealed plans to sell or reorganize its operational business units. The firm has received multiple offers to the tune of billions from interested investors.
Despite a revelation of how deeply-rooted the alleged corruption within the firm was, the recent developments have introduced a glimmer of hope to affected parties. With the contagion concerns waning, crypto markets have been recovering. XRP has also gained over 1% in the past week.
Meanwhile, with the next hearing slated for November 30, the court case between Ripple Labs and the SEC has developed quite nicely for the former. The Crypto Basic recently reported several amicus briefs filed to demonstrate XRP’s numerous utilities and support Ripple against the SEC. Out of the 11 recently-approved amicus briefs, nine supported Ripple.
Notwithstanding, Ripple and SEC are yet to file reply briefs for each party’s summary judgment motion. These reply briefs will be filed under temporary seal, as they will be made public on December 5, following proper redaction. Recently, attorney Bill Morgan asserted that the SEC could go for a settlement in an attempt to keep docs of the Hinman speech confidential. According to him, Ripple’s possession of the documents gives them real leverage.
XRP’s Price Movements
The developments with the SEC case and the declining panic from the FTX contagion have contributed to XRP’s newfound strength. Despite starting the day on a slightly bearish note, XRP has managed to retain its position above $0.38 for hours today, avoiding a drop below the zone.
The asset is changing hands at $0.3822 as of press time and will likely hit the first significant resistance zone at $0.3865. However, should the broader crypto market enjoy an extended period of sustained peace, XRP could reclaim the $0.3865 price point and rally to the second resistance level at $0.3914. This could be the asset’s launchpad to the $0.40 territory.
Notwithstanding, XRP and the rest of the markets are not out of the woods yet, as emerging reports of withdrawal suspension from several crypto entities are likely to exacerbate the current abysmal situation. Should more reports surface and the panic picks up again, XRP could plummet to the first significant support at $0.3722.
A break below $0.3722 due to sustained panic could lead the asset to support at $0.3628. In that instance, it will risk a drop below $0.35 to find support at $0.3485.