With crypto markets turning bullish, Ripple (XRP) price is approaching a key resistance area where it will face a make-or-break decision. The upcoming US SEC appeal decision on October 7 will be crucial in deciding the direction and help with XRP price prediction. Although the XRP community believes there won’t be an appeal from the US Securities & Exchange Commission (SEC), a former SEC Lawyer thinks otherwise. Pro-XRP lawyer John Deaton also believes there could be an appeal, but his explanation is different.
Former SEC Lawyer & Pro-XRP Attorney Believe SEC Appeal Likely to Come
XRP vs. SEC Lawsuit has been a hot topic even after Judge Analisa Torres ruled in favor of Ripple in July 2023. The latest discussion has been surrounding the potential SEC appeal that will contest the said ruling. While the XRP community believes there won’t be an appeal from the SEC, two experts believe otherwise.
Fox Journalist Eleanor Terette posted on X about her conversation with a former SEC lawyer who believes that the SEC will “probably” appeal the July 2023 ruling. The ex-SEC employee added,
“Everyone over there [at the SEC] truly believes that the decision is wrong, that it’s not good law, and should be appealed”
Pro-XRP lawyer John Deaton echoed with Elanor Terette’s X post and former SEC Lawyer and mentioned that there could most likely be an appeal from SEC chair Gary Gensler. Death explained that an appellate court won’t rule Judge Torres was in error, however, even if they did, the SEC still wouldn’t win the case. The pro-XRP lawyer added that the SEC’s weakest argument is the “common enterprise” factor, which Judge Torres didn’t need to apply since the third prong of the Howey Test wasn’t satisfied.
Regardless, both John Deaton and the pro-XRP lawyer believe that the SEC appeal will come before the October 7 deadline.
XRP Price Prediction: 25% Crash Likely on SEC Appeal
Since the September 6 crash, XRP price has soared 23% and currently trades at $0.618. Although an uptrend from here is unlikely, XRP price prediction notes that a correction is brewing for Ripple.
Here are two reasons why XRP price could crash:
- XRP trades below the $0.639 resistance level that has prevented a breakout for the past seven months. The yearly VWAP level also coincides closely with the above level, making it a tough level to crack.
- The SEC appeal anticipation serves as a headwind and could discourage buyers, preventing XRP price from rallying higher.
As a result of these two reasons, Ripple’s price could crash soon. Therefore, investors must keep a close eye on the $0.639 resistance level. Rejection here could lead to a 25% correction to the support level at $0.469.
The Relative Strength Index (RSI) and Awesome Oscillator (AO) are both hovering around their respective mean levels of 50 and 0, respectively, for the past few days, signaling indecision. As mentioned above, the SEC appeal will be the deciding factor that could crash or propel XRP.
On the other hand, if XRP price manages to flip the $0.635 resistance level into a support floor, it would signal strength. Such a development could occur if the SEC does not appeal. In such a case, Ripple could shoot through $0.636 and rally 12% to target the $0.714 hurdle.
Frequently Asked Questions (FAQs)
A former SEC lawyer and pro-XRP lawyer John Deaton believe that the SEC will likely appeal the ruling, despite the XRP community’s optimism that there won’t be an appeal.
An SEC appeal could lead to a 25% crash in XRP price, as it may discourage buyers and prevent the price from rallying higher. However, if the SEC doesn’t appeal, XRP could surge 12% to target $0.714.
The Relative Strength Index (RSI) and Awesome Oscillator (AO) are signaling indecision, with both hovering around their mean levels of 50 and 0, respectively.
Akash Girimath
Akash Girimath, an engineer by training, has developed a deep fascination with the complexities of cryptocurrency markets. As a senior reporter and analyst, he specializes in crypto analysis and contributes his expertise to notable platforms such as AMBCrypto and FXStreet. In addition to his analytical work, Akash actively trades cryptocurrencies and manages a small crypto fund for friends and family. His role involves providing insightful market analysis and keeping readers informed about the latest trends in the crypto world. Follow Him on Youtube , X and LInkedIn
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/xrp-price-prediction-as-former-sec-lawyer-says-sec-will-probably-appeal/
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