Following Bitcoin and other altcoins into a slump after the LUNA-UST incident, the XRP price is stuck in a rut. Ripple, on the other hand, is battling the claims of the US Securities and Exchange Commission (SEC) and proving that the XRP token is not a security.
With the SEC vs. Ripple litigation, XRP appears to be on top after months of debate. Ripple is currently going to sue the SEC using the famous William Hinman speech and related papers.
Former SEC Director William Hinman gave a speech in 2018 detailing his views on Bitcoin and Ethereum, stating that these digital assets were not securities.
Hinman consulted the SEC for their comments and had many discussions about the alleged speech, which the Ripple lawyers are after. Despite the fact that the defendants have won many motions, the prosecution is sticking to its guns and refusing to give Ripple the discussion documents.
Although Ripple appears to have the upper hand, the defendants would benefit greatly if the court rules in their favor and forces the SEC to provide the discussion documents or emails. As a result, the price of XRP may experience an increase in purchasing pressure followed by a rapid rise.
Will XRP Price Dump More?
Since its ATH of $1.96 in April 2021, XRP has been on a severe downturn. The token has fallen by 80% so far and is now trading at $0.40. The $0.52 and $0.69 support levels were turned into resistance barriers as a result of the recent downswing.
The recent bullishness witnessed in Bitcoin’s price, which is pointing to a move to $31,000, is bolstering the short-term optimistic outlook. This upsurge might stretch to $36,000 in the short-to-medium range, which could be a bull trap or a dead cat bounce.
As a result, the likelihood of the XRP price following this trend is also increased. A drop in the large crypto will cause altcoins, including Ripple, to follow suit, regardless of where the token forms its local top.
In this event, the price of XRP might break through immediate support levels and return to the largest volume traded point since 2017, referred to as the point of control at $0.19. In sum, this shift would represent a 64% drop from $0.52.