XRP price crashed 5% hours after Judge Analisa Torres denied both parties in the Ripple-SEC lawsuit, the request for an indicative ruling. Soon after, market sentiment for XRP flipped bearish as the settlement in the SEC lawsuit could be delayed further. Ripple CLO Stuart Alderoty said that they would be working together with the SEC to address Judge Torres’ concerns.
XRP Price Rally to Stall From Here?
Amid a strong undercurrent in the altcoins market, XRP price performance has remained laidback with 16% monthly gains, while peers like Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), and others are up by 3-50%.
Following the court decision on Thursday to deny the joint motion in Ripple-SEC lawsuit, XRP crashed 5%, slipping to $2.35 earlier today. The ripple cryptocurrency faced a strong rejection at $2.6 earlier this week, and corrected nearly 10% from the top.
On the technical chart, XRP price is currently testing a crucial trendline, while facing a make-or-break situation. According to crypto trader “Man of Bitcoin,” a breach under this trendline could lead to a substantial pullback to the next support identified in the $2.19 to $1.79 range.
Source: Man of Bitcoin
As per the Coinglass data, the XRP open interest has also tanked 6% to $5.08 billion, while the 24-hour liquidations have crossed to $22.86 million of which $20.37 million is inlong liquidations.
Experts’ Take on What Happens Next in the Ripple Lawsuit
After Judge Analisa Torres rejected the joint motion for an indicative ruling on Thursday, experts and lawyers from the Ripple community shared their take on what lies ahead. With the joint motion Ripple was trying to get out of two major penalties: the order to stop selling illegal securities and the requirement to pay the full fine.
However, the court believes that the motion was “improperly” filed with an attempt to cancel important parts of the final decision that had already been made in the case.
Crypto lawyer John Deaton raised an important point that from Judge Torres’s perspective, the SEC has invested five years aggressively pursuing its legal strategy against Ripple, consuming “thousands of hours of legal and judicial manpower,” only to now suggest that much of this extensive effort was unnecessary.
In addition to denying the joint motion in the Ripple-SEC lawsuit, Judge Torres has provided clear guidance for the next potential steps. The court indicated that both the SEC and Ripple would need to satisfy specific legal requirements and demonstrate that modifying her previous decision would serve the interests of both the public and institutional XRP buyers. We might as well see the XRP price rally stalled until things become clear.
What Are the Next Steps for Ripple & SEC?
Following the court decision, Ripple CLO Stuart Alderoty stated that Ripple and US SEC would revisit this issue together. In a message on the X platform, the Ripple CLO wrote:
“Nothing in today’s order changes Ripple’s wins (i.e. XRP is not a security, etc). This is about procedural concerns with the dismissal of Ripple’s cross-appeal. Ripple and the SEC are fully in agreement to resolve this case and will revisit this issue with the Court, together”.
Pro-XRP lawyer Bill Morgan has outlined a potential sequence of legal actions in Ripple’s ongoing case:
Following an indicative ruling, the parties would file a motion with the Court of Appeals for a limited remand to secure agreed-upon relief from Judge Torres.
Upon approval of the limited remand, a motion will be filed with Judge Torres seeking the agreed relief.
After dissolving the injunction and paying a reduced fine of $50 million, the parties would move to dismiss both the appeal and cross-appeal with the Second Circuit Court.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
