End-of-Year Ripple Update: XRP Eyes Potential Rebound Amid Legal Uncertainties

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As a seasoned crypto investor with a knack for deciphering market trends and navigating regulatory complexities, I find myself intrigued by the current state of XRP. The recent 6% plunge has certainly caught my attention, but the bullish divergence on the hourly chart hints at potential recovery in the near future.

In the past day, XRP, a digital currency tied to blockchain company Ripple, has seen a drop exceeding 6%, placing it among the most poorly performing currencies within the top 10.

Price Moves and Bullish Divergence

Information gathered from the 100 Eyes Crypto Scanner suggests that the XRP/USDT pair has developed a bullish divergence on an hourly chart. This pattern typically appears when the Relative Strength Index (RSI) increases while the price decreases, suggesting that the bearish trend could be starting to lose steam. However, analysts advise taking this technical signal into account along with other indicators.

The leading digital currencies experienced declines in value following the Christmas break, with trading being relatively light. Specifically, Cardano (ADA) decreased by 5.9%, Dogecoin (DOGE) dropped by 5.7%, and Bitcoin (BTC), which had almost touched $100,000 over the holiday period, declined by 3%. This downturn could be attributed to year-end portfolio adjustments.

Ripple’s Legal Saga Enters a Critical Phase

Currently, the ongoing legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC) continues, with major deadlines scheduled for early 2025. The United States Court of Appeals for the Second Circuit has designated January 15, 2025, as the date by which the SEC must submit its opening brief in the appeal. This decision follows Judge Analisa Torres’s 2023 ruling that XRP is not classified as a security, marking a significant victory for Ripple.

Stuart Alderoty, Ripple’s top legal officer, states that the ongoing appeal does not dispute the primary issue: whether XRP should be categorized as a security. The company insists on XRP having the same clear legal status as Bitcoin. Alderoty encourages the incoming administration to erase the doubtful impact of William Hinman’s controversial 2018 speech from the SEC, which is what he means by “cleansing the lingering stain of Hinman.

Potential Policy Shifts Under a New Administration

Adding another wrinkle is the recent Trump election victory, which some market participants believe may hasten a favorable resolution. Paul Atkins, slated to assume SEC Chair responsibilities, is known for a pro-crypto stance. Legal experts suggest that Atkins’s leadership might lead to either a settlement or a withdrawal of the SEC’s case against Ripple, sparking optimism among XRP holders.

Distinguished lawyers like Jeremy Hogan and Fred Rispoli predict a resolution instead of an outright dismissal in the case. However, optimism is growing among cryptocurrency traders as they await a more favorable stance from the SEC towards digital assets. This could potentially lead to an increase in XRP’s price if the lawsuit reaches a conclusion.

Market Outlook for 2025

Regardless of the persistent uncertainties, Ripple continues to make progress. This year, they launched RLUSD, their stablecoin, which temporarily improved XRP’s market perception. Yet, this positive trend was quickly overshadowed by broader market challenges and doubts about the outcome of the ongoing legal dispute.

At present, XRP is trading approximately $2.15, representing a drop of over 30% from its peak in early 2018. The future of this token might significantly depend on a positive legal resolution and the market’s general risk tolerance. Analysts posit that if the SEC were to alter its enforcement strategy or abandon its appeal, XRP could witness a resurgence, potentially surpassing $3 in the coming months.

Currently, XRP investors are approaching 2025 with a measured sense of hopefulness. Despite the unpredictable nature of the cryptocurrency market, indications of waning bearish influence and potential regulatory clarification may pave the way for a stronger year to come.

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2024-12-27 18:48