The legal showdown between Ripple Labs and the U.S. SEC has taken a pivotal turn, as both parties move toward a potential resolution. Recently, both parties jointly filed a motion requesting the court to revise its earlier judgment. The motion aims to reduce Ripple’s financial penalty from $125 million to $50 million, return $75 million in escrowed funds, and lift the injunction on institutional XRP sales, which is a major source of regulatory contention.
Here’s the Impact on XRP Price
Meanwhile, the investor’s sentiment around XRP has turned notably bullish in recent days. Following the news of the proposed settlement, the price experienced a minor uptick, trading around $ 2.2. If the legal clarity materializes, the XRP price projections range from $1.5 to $3, as the current price action indicates towards the beginning of a broader rally. Some more optimistic technical forecasts even target up to $4.5, based on breakout patterns and historical resistance levels.
As seen in the above chart, the XRP price has reached the edge of the consolidation and hence is speculated to undergo a bullish breakout. Although the price has been experiencing a notable upward pressure over the past few weeks, the token has managed to hold firmly above the ascending support of the bullish pennant. Therefore, a breakout is expected to elevate the levels to a new ATH.
What Technicals Say!
Despite the bearish pressure, the weekly RSI has remained strong above the ascending trend line, hinting towards a rising bullish potential. On the other hand, the weekly MACD shows a drop in the selling pressure, while the levels are going parallel to each other, displaying the possibility of a bullish crossover. Hence, the XRP price is expected to break above the crucial resistance and clear $2.5 initially and later make it above $3. If the price sustains above these levels, then the token is expected to form new highs around $3.6 to $3.7 in the short term before facing a rejection.
However, in the long term, the XRP price target remains beyond $5 to $8, which may be extended to $10.
