Now it appears that XRP has failed to capitalize on hopes that Ripple will finally win a victory over its long-running legal dispute with the US Securities and Exchange Commission as it teeters between profit and loss. September 19.
It may be recalled that the SEC and Ripple Labs, the company behind XRP, agreed to expedite the trial which aimed to determine whether or not the cryptocurrency could be considered a security.
Both sides now want a federal judge to rule on whether or not Ripple Labs violated federal securities laws or otherwise dismissed the lawsuit, ending the legal battle.
With that, Southern District of New York Judge Analisa Torres was asked to grant summary judgment based on arguments and accompanying documents submitted by the SEC and Ripple Labs which were released Friday on a basis of federal court data.
Entrepreneur and crypto enthusiast Jeff Sekinger shared some thoughts about it on Twitter, saying the case goes in favor of Ripple Labs.
Ripple and the SEC both agreed to expedite the trial on Friday to get an answer on whether $XRP is a security or not.
—Jeff Sekinger (@JeffSekinger) September 19, 2022
The pressure of an impending hike
Based on its September 19 daily candlestick, experts inferred that XRP’s performance showed a possible growing bias conflict among traders, with the cryptocurrency having strong ups and downs. It closed at $0.35 that day.
While the SEC lawsuit remains an important factor in this regard, it is believed that there is another possible reason for XRP’s performance. This could be the Federal Reserve’s next move to raise its benchmark interest rates by 75 or 100 basis points, which is expected to take effect on September 20.
These rate hikes have been proven over the years to put enormous pressure on the crypto market, even affecting pack leaders Bitcoin and Ethereum.
XRP is not out of the woods yet
As of this writing, XRP appears to be doing well as data from CoinGecko shows it is trading at $0.37 and eyeing a 10% price increase in the last 24 hours.
But it turns out there is nothing exciting about this gain, as independent market analyst Cheds shared their observation, stating that the price of XRP has fluctuated, confined within a “rectangular range” since June.
This “range” as described by Cheds has resistance at $0.38-$0.40 and support set at $0.28-$0.30. XRP, after seeing a drop in price on September 19, is heading towards the support zone and could break below $0.25 in the last quarter of 2022, losing 30% of its value.
XRP total market cap at $18.5 billion on the daily chart | Source: TradingView.com Featured image from Kriptokoin.com, Chart from TradingView.com (The analysis represents the author's personal views and should not be construed as investment advice).