XRP’s Comeback? Ripple’s SEC Challenge Fuels Network Interest
- Ripple has intensified its legal battle with a cross-appeal against the SEC.
- XRP network activity has surged to a six-month high.
- Analysts have suggested a potential XRP price revival amid legal challenges.
Ripple is back in the spotlight as it ramps up its legal confrontation with the U.S. Securities and Exchange Commission (SEC) . With a recent cross-appeal filing, Ripple is challenging key aspects of securities law interpretations that could have far-reaching implications for the crypto industry.
Amid this legal tussle, XRP’s network activity is surging, signaling renewed interest and potential momentum for the digital asset. As XRP’s active sending addresses reach a six-month high, investors are keenly observing whether this uptick could translate into a price rebound. Despite resistance and a recent price decline, some analysts believe XRP may be poised for a comeback.
Ripple Challenges SEC Amid Rising Network Activity
Ripple has submitted its civil appeal pre-argument statement, commonly known as Form C, as it continues its legal battle with the SEC. The core issue concerns whether an “investment contract” under the Securities Act requires an explicit agreement between parties.
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Ripple contends that such requirements do not apply to its distribution of XRP, challenging the SEC’s allegations of securities law violations. Legal expert Fred Rispoli suggests that a ruling in Ripple’s favor could significantly undermine the SEC’s regulatory framework for cryptocurrencies.
“If the court determines that actual contractual obligations are necessary to classify something as a security, it could overturn previous judgments and challenge the SEC’s authority,” Rispoli commented.
Ripple CEO Brad Garlinghouse warned that an SEC victory on this point could disrupt the industry, potentially pushing businesses to consider relocating outside the U.S. Amid these legal maneuvers, XRP’s network activity is making waves.
The number of active sending addresses has reached 12,230, the highest in six months. Analyst JA_Maartun notes that this increase indicates momentum returning to the XRP blockchain.
“This heightened engagement reflects improved sentiment for XRP specifically and indicates broader interest in returning to the crypto market,” he stated.
Potential for XRP Price Revival Despite Challenges
Currently, XRP’s price hovers around $0.5135, with resistance persisting since the start of October. The Relative Strength Index (RSI) is at 38.93, indicating a downtrend but not yet signaling oversold conditions. Despite the price decline, the surge in network activity suggests that investors are re-engaging with the asset.
Crypto analyst Dark Defender anticipates a potential 27% rise in XRP’s price to $0.86 if momentum continues. “According to his technical outlook, the path to this target will be challenging but achievable,” reports indicate.
However, analysts caution that the ongoing legal uncertainties may keep some investors hesitant until clearer resolutions emerge. Ripple’s CEO remains optimistic about the company’s future, noting increased interest from institutional investors and financial entities.
At Ripple’s recent Swell conference, representatives from major global banks discussed opportunities to use digital assets for more efficient payments and financial services. Additionally, Garlinghouse has expressed optimism about launching an XRP-based ETF, a move that, if approved, could significantly broaden XRP’s exposure.
On the Flipside
- A prolonged legal battle with the SEC could continue to suppress XRP’s price and market confidence.
- Regulatory uncertainties have the potential to deter partnerships and institutional adoption of XRP.
- Failure to break resistance levels may result in further price declines for XRP.
Why This Matters
Ripple’s legal challenges and XRP’s network activity are pivotal for the crypto industry’s future. The outcomes could influence regulatory approaches, investor confidence, and the adoption of digital assets in mainstream financial systems.
To learn more about Ripple’s confidence in winning its appeal against the SEC and the potential impact on the crypto industry, read here:
Why Ripple Execs Believe They’ll Win Against the SEC in Appeal
To learn more about the reasons behind XRP’s stagnant price despite the positive developments in Ripple’s legal battle with the SEC, read here:
XRP Price Stalls Despite Ripple’s Wins—What’s Holding It Back?
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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