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The XRP price experienced a significant decline on Thursday following new developments in the ongoing legal dispute between Ripple Labs and the US Securities and Exchange Commission (SEC).
Judge Analisa Torres’ decision to deny the joint motion from Ripple and the SEC for an indicative ruling halted the XRP price recovery as it aimed to breach the nearest resistance level at $2.23.
Key Issues Unresolved For Ripple
Despite the SEC dropping its appeal, which indicated that the primary legal conflict between the two parties may be reaching a conclusion, Judge Torres’ ruling highlighted that several procedural matters still require resolution, including necessary court approvals.
In her judgment, she made it clear that private agreements cannot supersede public court decisions, stating, “The parties do not have the authority to agree not to be bound by a court’s final judgment… They have not come close to doing so here.”
In response to the ruling, Ripple’s Chief Legal Officer, Stuart Alderoty, took to social media platform X (formerly Twitter) to convey that the situation is now back in Ripple’s hands.
The executive pointed out that the court has given them two options: either to dismiss their appeal regarding the historic institutional sales or to continue with the appeal.
Regardless of the path chosen, Alderoty emphasized that XRP’s legal status as a non-security remains intact, reassuring stakeholders that it is business as usual.
Expert Reactions To Torres’ Decision
Legal expert Fred Rispoli also weighed in on the implications of the injunction, stating that it would not impact XRP in secondary markets or affect potential exchange-traded fund (ETF) filings awaiting approval by the SEC.
He noted that the injunction is merely a court document and emphasized the low likelihood of Judge Torres calling Ripple and the SEC back into court unless the SEC believes Ripple is violating the terms of the injunction.
Rispoli further questioned whether the SEC has the authority to grant Ripple the necessary exemptions to alleviate any restrictions imposed by the injunction, suggesting that such actions fall within the SEC’s executive powers.
Ripple has asserted that it has adjusted its operations to align with the court’s findings, particularly regarding its past sales to institutional investors.
Alderoty’s use of the term “historic institutional sales” in his recent statement indicates a shift in how both parties might approach future transactions, signaling a potential settlement that would allow XRP sales to institutions in a manner acceptable to the SEC.
XRP Price Could Reach $5
Despite this temporary setback, market analysts remain optimistic about XRP’s future. Crypto analyst CryptoBullet recently noted that XRP’s two-week price chart resembles patterns seen in 2017, including a significant accumulation phase and a potential breakout.
With this historical context in mind, the expert predicts a final surge in the XRP price, forecasting new all-time high targets between $4.50 and $5.40 for the cryptocurrency.
As of press time, the XRP price has retreated to the $2.08 mark, which is a key support level for bulls anticipating further recovery of the token. In the last 24 hours, XRP has dropped 4.4%, and 10% in the last month. According to CoinGecko data, the XRP price remains 38% below its record high of $3.40.
Featured image from DALL-E, chart from TradingView.com
