Uncertainties from the lawsuit between Ripple and the SEC could contribute to XRP’s volatility in the near term.
The growing uncertainties surrounding the legal battle between Ripple and the United States Securities and Exchange Commission (SEC) will likely contribute to rising volatility for XRP. This volatility could see the asset eclipse the $0.40 zone or slip to $0.35 depending on whose favor subsequent rulings fall.
XRP has been in a consolidation phase since the beginning of the month, as price movements and on-chain metrics gradually slipped to the bearish territory, with the asset losing four out of the last five sessions. The Crypto Basic highlighted the possibility of consolidation below the $0.40 zone following the reply briefs from the SEC and Ripple, as uncertainties abound.
Uncertainties Surrounding the Ripple v SEC Case Abound
On December 2, defense lawyer James Filan published a redacted version of Ripple’s reply brief to the SEC’s opposition to its Summary Judgement motion. The reply argues that the regulatory watchdog confirmed, in its brief, that it can neither prove an investment of money or a common enterprise.
With both parties having filed their reply briefs, the XRP camp and the broader cryptocurrency community are anticipating updates on the case, as the next court date is slated for December 22. Due to the lack of any significant report, XRP’s price trajectory has been influenced by the rising uncertainty, contributing to building volatility that has shown bearish signs.
With the SEC yet to make a move for settlement, the positive sentiments built on the reply briefs have been put on hold, with investor apprehension building up. This has contributed to XRP’s slip below $0.39. However, expectations of an SEC settlement could be satisfied if the watchdog feels the case is leaning more toward Ripple’s favor.
“This is our final submission where we ask the court to grant judgment in our favor. After two long years, Ripple is proud of the defense we’ve mounted on behalf of the entire crypto industry. We have always played it straight with the Court. Can’t say the same for our adversary,” Ripple’s General Counsel, Stuart Alderoty remarked last Friday, speaking on the reply briefs.
XRP’s Recent Price Movements
XRP has plummeted by 3% in the past 24 hours at the reporting time. This downward slope followed a previous green candle for Sunday. XRP has shed its values four out of five times in the past five days, with the losing streak slipping to Tuesday.
As of press time, the asset is trading at $0.3822, down 0.71% in the past hour. XRP’s dream to return to the first major resistance zone at $0.3959 is hinged on the asset’s reclamation of $0.3885. Should the asset experience a sustained rally above the first significant resistance zone, it could reclaim the second resistance point at $0.4025.
Notwithstanding, XRP’s downward slope brings a feeling of investor angst, as a failure to recapture the $0.3885 level could contribute to a slip below the first major support level at $0.3819. If the asset fails to hold its head above $0.3750, the bears could batter it to the second significant support at $0.3745. A persistent slip will likely bring XRP to $0.3605, serving as its third support zone. XRP investors are, however, hoping for a positive trigger from the lawsuit, which should support the asset’s price rally.