Ripple faces challenges as its co-founder, Chris Larsen, missed a legal deadline, causing XRP to drop. The SEC lawsuit adds pressure to the situation.
Ripple XRP Drops Amid Legal Setback
`XRP, Ripple’s native token, saw a decline of nearly 3% on Wednesday, dropping to $0.5189. This decrease followed a missed legal deadline by Ripple co-founder Chris Larsen, who failed to submit a notice of appearance by October 18. With Ripple still embroiled in its ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC), market pressure on XRP is mounting. Analysts predict XRP could potentially fall further if Ripple’s legal troubles continue.
Ripple Co-Founder Misses Key Deadline
Ripple co-founder Chris Larsen missed the critical October 18 deadline to file his notice of appearance in the SEC lawsuit. According to Marc Fagel, a lawyer specializing in SEC enforcement, Larsen’s legal team risks losing its right to present oral arguments if they do not file by November 5. Missing this final deadline could significantly weaken Larsen’s position in the case.
Ripple’s Legal Challenges Continue
Ripple remains in the spotlight as it fights the SEC’s allegations concerning XRP’s classification as a security. Stuart Alderoty, Ripple’s Chief Legal Officer, reassured XRP holders that Ripple would file its pre-argument by October 25, 2024. This filing will challenge the SEC’s legal stance on XRP’s institutional sales. Ripple’s legal battle may extend into mid-2025, as the SEC has up to 90 days to respond to the upcoming appeal brief.
XRP’s Price Decline and Market Impact
XRP has experienced a steady downward trend since reaching a high of $0.7440 on March 11. Technical analysis suggests XRP could drop by another 7%, potentially reaching the psychologically significant level of $0.5000. The Relative Strength Index (RSI) sits at 36, indicating bearish sentiment. A further decline could push XRP to the lower boundary of the Fair Value Gap (FVG), which sits at $0.4780.
Potential Price Recovery for XRP
Despite the current bearish outlook, a price recovery remains possible for XRP. If the cryptocurrency manages to close above the resistance level of $0.5550, it could invalidate the current bearish thesis. XRP may then rally toward the upper boundary of the FVG on the daily chart at $0.5778, providing a potential opportunity for recovery. However, Ripple’s ongoing legal challenges will continue to weigh heavily on its market performance.
Legal Outcomes Could Shape XRP’s Future
The outcome of the SEC lawsuit could have a significant impact on XRP’s price in the coming months. With the SEC potentially prolonging the case into 2025, XRP’s market performance may remain uncertain for some time. Investors and XRP holders are closely watching both the legal proceedings and market movements as the case unfolds.
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