Despite a slight drop in value in the past 24 hours, the asset is still registering modest gains since the start of today.
XRP currently has its eyes set on the pre-FTX price territory at $0.45 amid several bullish speculations that have emerged on the legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). However, the asset’s goal to recapture the $0.45 territory is significantly hinged on its reclamation of the $0.42 zone.
Bullish Speculations on the Ripple Case Emerge
Despite the absence of an important court decision on the Ripple case in the past few weeks, speculations on the outcome of the litigation have gained steam, as several high-profile individuals and crypto proponents have asserted that Ripple has a better chance at winning the case.
Notably, LBRY, a blockchain-based payments network, secured a significant victory against the SEC after the November 7 ruling in favor of the regulatory watchdog. The Judge recently noted that the previous November 7 ruling against LBRY Credits (LBC) does not apply to secondary sales of the token.
The court recently established a standard that LBC, the underlying asset of the investment contract, did not constitute a security. The standard was committed on paper by the SEC. Following the enacted standard, LBRY and other individuals have claimed that XRP can also not be classified as a security. Consequently, calls for Coinbase to relist XRP emerged.
Moreover, attorney John Deaton recently argued that even if Ripple once sold XRP as a security, it still does not make the token in itself a security. According to him, “XRP remains a digital code.” He cited previous cases when Bitcoin was once packaged as a security, but now fully classified as a non-security.
Meanwhile, Ripple’s quarterly report for Q4 2022 has also revealed some remarkable achievements, contributing to an increase in investors’ interest. On-chain transactions on XRPL in Q4 2022 increased to 106M notwithstanding a massive decline in trading volume within the broader crypto market.
XRP Price Analysis
Amid these bullish speculations and favorable reports, XRP looks primed to recapture the lofty position at $0.45. Despite being subjected to the bearish headwinds observed in the broader market, XRP aims to establish a comfortable position above the $0.41 level, currently changing hands at $0.4111 as of press time.
The asset is looking to conquer the $0.42 zone which would be used as a launchpad for a rally to $0.45. Scaling through the resistance points at $0.4166 and $0.4234 would provide enough support to the bulls for the rally. XRP recently broke a trendline it’s been caught in since last November, as disclosed by analyst Crypto Tony. Notwithstanding, he highlighted the asset’s weak position at this point.