- The US SEC has dropped legal actions against Coinbase, OpenSea, and Robinhood.
- Industry members have met with the SEC over spot ETF approvals and enforcement approaches.
- XRP has crashed 8% in the past days but investors can expect a rebound if XRP ETF is approved.
The long-running battle between Ripple Labs and the United States Securities and Exchange Commission (SEC) has been key for XRP’s market moves. XRP’s price action largely depends on the resolution of the lawsuit and the approval of a spot XRP exchange-traded fund (ETF) in the US.
American exchange Coinbase recently announced that the SEC was close to dismissing its lawsuit against the exchange. This action is similar to the SEC’s recent decision to drop its case against OpenSea, a leading NFT marketplace.
SEC Enforcement Approach “Changing”
Furthermore, the SEC has closed its investigation into Robinhood Crypto, signaling a notable change in the agency’s approach to enforcement.
While Kraken and Uniswap still face potential lawsuits, the general trend suggests the SEC may be pulling back from its aggressive regulatory stance against major crypto firms.
Related: XRP Edges Out Ethereum in Coinbase Trading Revenue First Time Ever
Ripple May Benefit from SEC’s Shifting Stance
This shift could affect Ripple’s legal battle, especially as the SEC engages in discussions with major industry players such as the Crypto Council for Innovation, Zero Hash, and Paradigm Operations.
During the meeting, the industry members asked the SEC to change its requirements when it comes to the approval of spot crypto ETFs in the US.
Related: Ripple CEO Applauds SEC for Dropping Coinbase Lawsuit: Time for XRP to Shine?
With the crypto task force led by SEC Commissioner Hester Peirce pushing for clearer regulations rather than aggressive litigation, Ripple may find itself in a more favorable position moving forward with increased chances of the approval of a spot XRP ETF.
Meanwhile, Brazilian regulators have already approved the first spot XRP exchange-traded, setting a new example for regulators around the globe.
XRP Price Analysis: Trading Near Oversold Levels
At the time of writing, XRP is trading at $2.28, down over 8% in the last 24 hours.
Based on the chart provided by TradingView below, the Relative Strength Index (RSI) for the XRP price action reads a value of 35.95, which means that XRP is getting close to oversold territory. If the RSI drops below 30, it could indicate a strong buying opportunity, as traders may anticipate a rebound.
The Moving Average Convergence Divergence (MACD) indicator has turned bearish after a bearish crossover with the MACD line (blue) dropping below the signal line (orange). The MACD histogram has turned bearish.
Crucial Support Resistance Zones for XRP
The nearest support is the $2 price level. If XRP fails to hold this level, it may test the $1.80 support zone.
However, a breakout above the resistance of $2.5 could mean a bullish reversal for the third-largest digital asset.
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