As XRP swung between profit and loss on September 19, it seems that Ripple has failed to capitalize on the long-running legal battle with U.S. Securities and Exchange Commission.
The SEC and Ripple labs (the company behind XRP) agreed to accelerate the lawsuit to find out if the cryptocurrency can be considered a security.
Now, both parties want a federal judge in order to rule on Ripple Labs’ violation of federal securities laws.
Analisa Torres, New York Southern District Judge has been requested to issue a summary judgement based upon the arguments and supporting documents that were submitted by Ripple Labs and SEC. These materials had been posted onto a federal court database Friday.
Jeff Sekinger is a cryptocurrency enthusiast and an entrepreneur.
Ripple, along with the SEC, agreed to accelerate the lawsuit Friday in order to receive an answer as to whether $XRPIs it a security?
— Jeff Sekinger (@JeffSekinger) September 19, 2022
A Fed Hike is imminent: The pressure
Basing on its September 19 daily candlestick, experts inferred that XRP’s performance showed a possible growing bias conflict among traders, with the cryptocurrency having sharp bullish and bearish runs. That day, it traded at $0.35.
Although the SEC suit remains a major factor in this matter, there may be another reason for the performance of XRP. One possibility is the Federal Reserve’s upcoming decision to increase benchmark interest rates 75-100 basis points. It will take effect on September 20,
This has been shown over time to exert tremendous pressure on crypto markets, affecting pack leaders Ethereum and Bitcoin.
XRP Still Not Out Of The Woods
XRP appears to be performing well, as CoinGecko data shows that the cryptocurrency is currently trading at $0.37 and has seen a 10% rise in price over 24 hours.
But it turns out that this gain is nothing to be excited about, as independent market analyst Cheds shared its observation, stating that XRP price has been fluctuating, confined inside a “rectangular range” since June.
This “range” as described by Cheds has the resistance of $0.38-$0.40 and support that is set at $0.28-$0.30. After a sharp drop in XRP’s price on September 19, it is heading toward the support zone and may fall below $0.25 during the last quarter of 2022. This would mean that it could lose 30% of its market value.
Source: TradingView.com| Source: TradingView.com Kriptokoin.com Featured Image, Chart by TradingView.com The analysis is a personal opinion of the author and should not be considered investment advice.