XRP dropped from $2.5712 to a June 5 low of $2.0607 in response to Judge Torres rejecting the first filing. The token has since steadied, hovering above the $2.1 level in anticipation of a favorable outcome.
However, one former SEC lawyer, Marc Fagel, warned:
“I can’t predict how the judge will rule. This is unprecedented – possibly the first time the SEC has changed administrations and sought to undo a court victory – and the court could go either way. If she denies the motion, Ripple will have to decide whether to continue its appeal.”
Judge Torres Ruling Key to the SEC Appeal and XRP-Spot ETF Approvals
Judge Torres’ indicative ruling is pivotal in the Ripple case. If Judge Torres grants a favorable indicative ruling, Ripple and the SEC will drop their appeals.
The SEC’s appeal withdrawal could expedite the approval of pending XRP-spot ETF applications, potentially fueling XRP demand. However, if the Judge rejects the ruling for a second time, the SEC’s appeal plans may hinge on whether Ripple pursues its cross-appeal.
As background, the SEC appealed against Judge Torres’ Programmatic Sales of XRP ruling. In 2023, Judge Torres ruled that programmatic sales of XRP did not satisfy the third prong of the Howey Test.
In a worst-case scenario, a successful appeal would place XRP under the purview of the SEC, potentially leading US crypto exchanges to delist the token. ETF issuers may lose access to active markets for XRP, impacting approval prospects.
XRP Price Outlook: Court Rulings and ETF News
XRP dropped 0.20% on Thursday, June 19, partially reversing Wednesday’s 0.48% gain to close at $2.1666. The token tracked the broader market, which fell 0.18% to a total crypto market cap of $3.21 trillion.
A breakout above $2.2 and the 50-day Exponential Moving Average (EMA) could pave the way to the June 16 high of $2.3376. A sustained move through $2.3376 may open the door to retesting $2.50 and the May 12 high of $2.6553. However, a break below the 200-day EMA could expose the $1.9299 support level.