In the ongoing legal battle between Ripple and the United States Securities and Exchange Commission (SEC), a crucial detail has emerged that may give the cryptocurrency community cause for optimism. The SEC, embroiled in a high-profile case against Ripple, has suffered setbacks in five of its six most recent Supreme Court appearances. However, the XRP price has failed to sustain its bullish rise recently as it loses critical support levels, causing bearish issues among XRP holders ahead of the final hearing.
Ripple to come out on top
The string of recent SEC Supreme Court losses may indicate that the agency is experiencing difficulty making its case or adjusting to an evolving legal landscape, which could leave room for Ripple to gain.
In a recent development, Ripple Labs, along with its executives Brad Garlinghouse and Chris Larsen, issued a forceful response to the US Securities and Exchange Commission (SEC) in a letter addressed to its Supplementary Authority.
The defendants, Ripple, assert that the SEC referred to an unpublished, out-of-circuit district court opinion in its argument. Furthermore, they added that, in the Commonwealth case, the defendants argued that the SEC lacked substantial evidence to support its defense against Ripple’s fair notice argument. This latest news highlights the current intensity of the legal battle between Ripple Labs and the regulatory authority.
Ripple’s legal chief has been openly critical of the US SEC’s recent record, noting that the regulator appears to be facing a losing streak at the Supreme Court level.
XRP price needs to test this level
A key factor contributing to the recent decline XRP is facing is declining trading volume, indicating waning interest from both traders and investors in the digital asset. This decrease in trading volume may have adverse effects on XRP as it reduces liquidity. Consequently, the asset becomes more vulnerable to price swings and increased volatility, which could deter further participation and investment in the market.
On the daily price chart, the price of XRP has broken below the key Fibonacci channel support level of 23.6%. However, the price has enough room before dipping below the 20-EMA trend line at $0.5 on the daily price chart, which suggests that the bulls have not completely lost control.
At time of writing, XRP price is trading at $0.5121, down more than 1.5% from yesterday’s rate. Looking at the 4-hour price chart, the XRP price has formed a descending triangle pattern. If the XRP price falls below the 100-EMA at $0.5, a sharp drop is expected. To initiate a bullish reversal, XRP needs to test the $0.48 level.
This post XRP loses critical support level! Here is the potential level that can revive the price of XRP
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