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Key Takeaways:
- XRP jumped 7% on bullish news from the SEC vs Ripple lawsuit.
- SEC dropped charges against two Ripple executives.
- XRP investors still cautious, given a slew of macroeconomic challenges.
YEREVAN (CoinChapter.com) — XRP rose 7% to $0.51 on Oct. 20, with its gains driven by another Ripple win in the Court. Notably, the US Securities and Exchange Commission (SEC) dismissed the case against Ripple’s Chief Executive Brad Garlinghouse and Executive Chairman Chris Larsen.
SEC Dropped Charges against Ripple Execs
As CoinChapter reported earlier, the SEC has not yet won the lawsuit on any front. However, dropping charges against two executives, initially accused of aiding and abetting Ripple, in violating federal securities laws, was nonetheless a big win.
The SEC addressed a letter to US District Judge Analisa Torres, formulating their intent.
Plaintiff [SEC] respectfully notifies the Court of the stipulated dismissal of the SEC’s pending claims against Defendants Christian Larsen and Bradley Garlinghouse (Individual Defendants)…Pursuant to […] Federal Rules of Civil Procedure, the parties have stipulated to the dismissal with prejudice of this claim.
Read the letter
Ripple’s Chief Legal Officer called the SEC’s decision a “capitulation,” not a “settlement.” Larsen called the agency “rogue” and called their lawsuit claims “baseless.”
The win came after Judge Torres granted Ripple another major advance on July 13. The Court ruled against SEC’s claims, declaring XRP was not security asset. Hence, no violation of US securities laws in retail XRP sales.
However, the judge found Ripple guilty of violating securities laws in institutional sales.
XRP Price Analysis
XRP’s price exhibited a muted reaction to the latest SEC vs. Ripple update, compared to its 80% rally after the July ruling.
Furthermore, the token retested its 100-day exponential moving average (100-day EMA; the green wave) as resistance, intensifying the selloff.
If XRP bulls push for another leg up, the likely price target would be a former resistance of $0.54 (the magenta line). The line has been hindering XRP’s upside moves since September 2022, with the exception of the short-lived July rally.
Breaking this resistance to the upside could push XRP’s price toward $0.61 before a potential retreat.
However, market participants might remain cautious, given the overall passivity of the crypto market and macroeconomic headwinds, such as several active war zones globally, consecutive fuel price jumps, persisting inflation, etc.
XRP 24-hour and 7-day active addresses did not spike, confirming the holders’ cautious stance.
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