The XRP price has remained in a tight range over the past few days as the recent momentum faded. On Friday morning, XRP was trading at $2.4175, down from this week’s high of $2.60. This article explores what to expect now that the SEC vs. Ripple case has ended.
Ripple Traders Eye Next Catalyst After SEC Lawsuit
The XRP price reacted mildly to the SEC’s recent decision to end its litigation against Ripple Labs. The litigation started in December 2020, when the agency accused Ripple Labs of raising money illegally through selling unregistered securities.
Ripple Labs secured a partial victory against the SEC when the judge overseeing the case ruled that XRP was not a security. However, it was forced to pay a $250 million fine after the court determined that some of the tokens sold to institutions violated the law. The SEC then appealed that ruling, challenging its interpretation of the law.
The price of XRP showed little reaction to the conclusion of this case because most market participants were expecting that to happen. Besides, during Donald Trump’s administration, the agency hinted that it would do away with some of the cases brought by the previous administration. It ended cases against other companies like Coinbase, Kraken, Binance, and Uniswap, meaning it was just a matter of time for Ripple.
The XRP price has also wavered as investors anticipate the next big thing. In this case, the next big news will be the approval of an XRP ETF. Moreover, most analysts predict this will occur, given the court’s ruling that XRP is not a security.
The XRP ETF news will likely be positive for the coin because it will lead to higher inflows. What remains unclear, however, is whether Wall Street investors will be willing to buy XRP and other altcoins. Recent data shows they have avoided Ethereum ETFs. As such, an ETF approval may become a “sell the news” situation.
XRP Price Technical Analysis
The daily chart above shows that the XRP price is at risk of further downside because it has formed a head-and-shoulders pattern. Its head section is at $3.4, while the shoulders and neckline are at $3 and $2, respectively. An H&S pattern is one of the most bearish signs in the market.
XRP price has remained between the 23.6% and 38.2% Fibonacci Retracement levels. Therefore, the coin’s outlook is bearish unless it moves above the shoulders side at $3. A bearish breakdown will be confirmed if the XRP price drops below the neckline at $2. Such a move will see it move below the psychological point of $1.
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