XRP Price in the Spotlight Following US SEC’s Crypto Regulatory Tone-Down

by

As an experienced analyst, I believe that the recent developments in the altcoin industry, particularly regarding Ethereum and Ripple-backed XRP, are significant indicators of shifting regulatory policies towards cryptocurrencies in the United States. The closure of investigations into Ethereum and the potential settlement in the ongoing Ripple case suggest a more lenient approach towards these digital assets.

The United States government led by President Joe Biden has significantly changed its stance on the altcoin industry, led by Ethereum (ETH price data) and Ripple-backed XRP (XRP price data), ahead of this year’s elections. The US political class has continued to take advantage of the well-organized crypto investors, amounting to over 50 million American voters, to persuade support in the upcoming elections.

According to Coinspeaker’s latest update, the US Securities and Exchange Commission (SEC) has concluded its probes into Ethereum, indicating that Ether-backed exchange-traded funds (ETFs) may soon be classified as commodities. This decision by the SEC has fueled optimism regarding potential outcomes in the ongoing Ripple case.

As a researcher, I’ve come across an interesting development in the ongoing legal battle between the Securities and Exchange Commission (SEC) and Ripple. The SEC has requested the court to impose a penalty of $102.6 million on Ripple for allegedly violating securities laws during their sales of XRP to institutional investors. This case, often referred to as the SEC vs Ripple lawsuit, holds significant importance in providing much-needed legal clarity regarding XRP’s status within the US regulatory framework. Judge Analisa Torres made a landmark ruling that exchange sales of XRP do not infringe upon any securities laws.

Based on the views of a well-known cryptocurrency analyst, Bill Morgan, the conclusion of Ethereum’s probes and the impending Ripple settlement serve as strong evidence of the Securities and Exchange Commission’s (SEC) unpredictable approach to regulating crypto assets.

Following this development, the data analysis company CryptoQuant has reported a significant increase in open interest for XRP. This surge in open interest aligns with the current optimistic market attitude towards XRP, accompanied by increased trading activity on a day-to-day basis.

$XRP in the Spotlight
As I analyze market trends, I’ve noticed an intriguing pattern emerging. With each rising price point, there’s a corresponding surge in open interest for #XRP. This indicates that investors are actively entering the market, optimistic about potential price growth.
Read more 👇
— CryptoQuant.com (@cryptoquant_com) June 19, 2024

Market Picture

Ripple has persisted in constructing essential foundations for widespread acceptance of XRP and its blockchain payment solutions. Notably, the firm has encountered strong backing in countries known for their substantial crypto markets, including Singapore, Japan, and Europe.

Ripple recently unveiled a XRPL fund to foster blockchain advancements in Japan and South Korea. With a strong commitment to enhancing XRPL, the blockchain payments firm is prioritizing steps to guarantee a robust web3 expansion.

This month, Ripple introduced the XRPL EVM Sidechain, allowing for improved interaction between the Ethereum Virtual Machine (EVM) and the XRPL blockchain.

This year, the company introduced its own Automated Market Maker (AMM) for XRPL to boost XRP‘s market liquidity. Additionally, Ripple intends to debut a USD-pegged stablecoin on both Ethereum and XRPL networks by the end of this year.

Price Action

In the last three years, despite facing significant legal challenges, Ripple’s XRP still ranks among the ten most valuable digital assets with a fully diluted market capitalization of approximately $49 billion and an average daily trading volume of about $1.4 billion. Over the past week, this large-altcoin has risen by 2 percent and was priced around $0.49 on Wednesday.

As a crypto investor, I’m excited to share that from a technical perspective, I believe XRP‘s price is on the brink of an impressive rally. The monthly Relative Strength Index (RSI), which measures the momentum or strength of a security’s recent price action, has formed a robust support level above the 50 percent mark. This signifies that XRP has been oversold in the past and may be poised for a significant bounce back.

Read More

2024-06-19 15:48