By
Svetlana Soroka
May 19th, 2024
The SEC’s lawsuit has influenced the trajectory of XRP price. The ongoing legal saga prevented a sustained rally and kept XRP on a downward trend from its 2021 peak of nearly $2.
The long-awaited Ripple versus Securities and Exchange Commission (SEC) legal battle has taken an important step forward. The SEC has submitted its final response in the remedies phase of the lawsuit, marking a turning point in the legal fight that has impacted XRP for over two years.
While the full details of the SEC’s filing remain private, a version with some information removed will be made public on May 8, 2024. This public release will be crucial for both Ripple and the XRP community. It will allow them to understand the possible outcomes of the lawsuit’s resolution.
The SEC’s lawsuit has undeniably impacted XRP price trajectory. The legal uncertainty has hindered a sustained rally, leaving the XRP in a downward trend since its 2021 peak of nearly $2. However, a wave of optimism is sweeping through the XRP community as the lawsuit nears its conclusion. Analysts believe a final decision will remove a significant barrier and pave the way for a potential price surge.
Symmetrical Triangle Signals XRP Breakout
Analyst Jonathan Carter suggests XRP may break out, driven by a technical pattern known as a symmetrical triangle. This pattern often forms during consolidation periods, with prices moving between converging upper and lower trendlines. XRP has been trapped within this triangle for years, indicating a potential tug-of-war between buyers and sellers.
Photo: TradingView
A recent price dip in April, following a broader market correction, saw XRP retest the lower trendline of the symmetrical triangle. In technical analysis, such a retest is often seen as a precursor to a breakout, where the price decisively breaks through one of the trendlines. Carter notes this retest as a sign of an imminent upswing for XRP.
Further supporting this bullish outlook is the MVRV Ratio, which measures whether an asset is overvalued or undervalued. XRP’s current MVRV sits at a low -0.5733, suggesting the token is trading significantly below its historical average price. This could be interpreted as a sign of undervaluation, potentially attracting investors seeking undervalued opportunities.
XRP Price Eyes $1.68 Target
Carter’s analysis paints a positive outlook for XRP, predicting an initial spike to $0.93 if a breakout from the symmetrical triangle occurs. This price level reflects XRP’s brief touch in July 2023 after a positive development in the SEC case. However, Carter believes XRP will surpass this resistance and reach a mid-term target of $1.68, showing a significant 223% increase from the current price of $0.52.
Photo: TradingView
While Carter’s forecast is undoubtedly bullish, Ripple still facing regulatory pressure. The ongoing legal dispute between Ripple and the SEC regarding XRP’s classification as a security remains unresolved. A negative outcome in the lawsuit could dampen investor sentiment and hinder potential price growth.
The SEC’s final response, scheduled for release on May 8, will provide valuable insights into the lawsuit’s potential path forward. Regardless of the outcome, the conclusion of this legal saga will be a pivotal moment for XRP and the broader cryptocurrency market.