Could SEC Appeal Derail Bullish Momentum?

• XRP recently recovered to $0.537 after a significant drop due to the SEC’s appeal in the Ripple case.
• The SEC’s appeal, now filed in the Second Circuit, questions aspects of Judge Torres’ ruling.
• Market sentiment remains mixed, with some predicting a potential rise to $0.95 despite ongoing legal uncertainties.

XRP has slowly started to recover after last week’s bearish pressure caused by the SEC’s motion to appeal in the Ripple case. At that time, XRP had plummeted by over 17%, dropping from $0.6058 to $0.5101.

As of today, XRP has established an intraday high of $0.5435 but is currently trading at $0.537 after a brief pullback. Essentially, XRP has yet to fully recover from the SEC-induced price drop, as the $0.60 level remains elusive.

The latest development is that the U.S. SEC’s appeal against Ripple is now filed in the Second Circuit’s PACER system. Defense lawyer James Filan shared this update, confirming the appeal is officially in the appellate court system.

This marks the beginning of the appellate process, allowing the court to review Judge Analisa Torres’ earlier decision to assess any potential errors.

Will the SEC Action Impact XRP Further?

Among the several rulings issued by Judge Torres was the determination that XRP itself is not a security and that Ripple’s programmatic XRP sales do not constitute an investment contract. The SEC has accepted the ruling that XRP itself is not a security; however, it is contesting other aspects of the rulings that favored Ripple.

Lawyer Bill Morgan has suggested that the appeal will likely focus on Ripple’s programmatic sales and other distributions. Morgan also mentioned the appeal might address penalties, injunctions, and disgorgement related to Ripple’s institutional XRP sales. However, former SEC attorney Marc Fagel believes it will be primarily limited to programmatic sales and distributions.

While the appeal does not concern XRP itself or XRP holders directly, market participants continue to speculate on XRP’s market position amid these legal developments.
Market commentator Moon Lambo highlighted that XRP’s price has only slightly increased from $0.52 on September 6 to just over $0.53 a month later. He leveraged the monthly price action to suggest that the SEC’s appeal in the Ripple case does not significantly impact the XRP market. Another community figure echoed this sentiment, predicting that XRP could rise to $0.95 soon, viewing the SEC’s appeal as a potential “bear trap” for investors.