© Reuters
NEW YORK – The ongoing legal battle between the U.S. Securities and Exchange Commission (SEC) and Labs continues to cast a shadow over the cryptocurrency market, with recent events contributing to increased investor uncertainty. On Sunday, the SEC’s rejection of an interlocutory appeal was seen as strengthening Ripple’s position in the case, potentially diminishing the SEC’s chances of success in post-trial appeals.
The legal proceedings have entered an appeals-focused discovery phase, with Ripple preparing to defend itself against possible punitive actions from the SEC scheduled for April next year. The court set a February deadline for this phase. Legal experts suggest that the precedents could limit the outflow related to institutional sales of XRP in the US jurisdiction.
Amid these developments, the value of XRP has seen some volatility. It fell to $0.6107 on Saturday, reflecting investor reactions to the ongoing affair; However, no new information emerged that day regarding Bill Hinman’s speech materials, which have been a point of contention in the trial.
As the market digests the implications of Judge Analisa Torres’ recent rulings, attention is also turning to another important legal showdown: the upcoming hearing between the SEC and Coinbase on January 17. The outcome of this hearing could reshape the regulatory landscape for digital assets in the United States. Coinbase gained notable support from Senator Cynthia Lummis, who filed an amicus curiae brief against the SEC’s regulatory claims.
From a technical perspective, despite short-term bearish sentiment, XRP maintains its position above the critical exponential moving averages (EMA), which some traders interpret as a sign of long-term upside. Resistance and support levels are currently set at $0.6354 and $0.5835 respectively. Meanwhile, relative strength index (RSI) indicators suggest that XRP could approach oversold conditions if it touches key trendlines.
Investors and market observers are closely following these legal developments, knowing that their outcomes could have far-reaching implications for the regulation and enforcement of cryptocurrencies in the United States.
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