It now appears that XRP has failed to capitalize on hopes that Ripple will finally emerge victorious in its long-running legal battle with the U.S. Securities and Exchange Commission as Ripple teeters between profit and loss on September 19.
It will be recalled that the SEC and Ripple Labs, the company behind XRP, agreed to expedite a lawsuit aimed at determining whether cryptocurrencies can be considered securities.
Both sides now want a federal judge to rule on whether Ripple Labs violated federal securities laws or otherwise dismisses the lawsuit, thus ending the legal battle.
In light of this, Judge Analisa Torres of the Southern District of New York has been ordered to issue summary judgment based on arguments and accompanying documents filed by the SEC and Ripple Labs, which were published Friday in a federal court database.
Entrepreneur and crypto enthusiast Jeff Sekinger shared some insights on the matter on Twitter, saying the case was in favor of Ripple Labs.
Both Ripple and the U.S. Securities and Exchange Commission agreed to expedite proceedings on Friday to obtain information on whether $Ripple Is it safe.
— Jeff Sekinger (@JeffSekinger) September 19, 2022
Pressure on the Fed to raise interest rates
Based on the daily candlestick on Sept. 19, experts deduce that XRP’s performance indicates a possible growing conflict of biases among traders, with the cryptocurrency seeing sharply bullish and bearish movements. It closed the day at $0.35.
While the SEC lawsuit remains an important factor, there is another possible reason for the way XRP is believed to be behaving. The Fed may be about to move to raise its benchmark interest rate by 75 or 100 basis points, expected to take effect on September 20.
Over the years, these rate hikes have proven to put enormous pressure on the crypto market, even affecting leaders Bitcoin and Ethereum.
XRP is not out of the woods yet
At the time of writing, XRP appears to be doing well, as data from CoinGecko shows it is trading at $0.37 and has gained 10% in price over the past 24 hours.
But that gain proved less of a cause for excitement, as independent market analyst Cheds shared his observations, noting that XRP prices have been volatile, staying within a “rectangular range” since June.
This “range” described by Cheds has resistance at $0.38-$0.40 and support at $0.28-$0.30. XRP is heading towards the support area after the price drop on September 19 and could drop 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).