In August a judge ordered Ripple to pay just over $125 million in civil penalties, officially ending the SEC’s lawsuit & concluding that XRP is not a security. This was a victory for Ripple, the entire crypto-industry and XRP. It is still possible for the SEC appeal to the Ripple Case. What would happen if the regulator decided to file an appeal and how might that impact the asset price?
Mattew Perry is a cryptocurrency analyst and he has posted a YouTube video discussing the potential for the SEC to appeal against Ripple. A deadline to appeal is coming up on October 6. An appeal might change XRP’s present trajectory. Many investors fear that if something changes in the court decision, XRP’s price could drop.
XRP grew 16% in one day following the Ripple v SEC case. Currently, the asset is trading under $0.60. Some speculate that XRP will reach $1 by 2024. An SEC appeal will change this. Investors might view a possible appeal as an opportunity to cast doubt on Ripple or its native token. Ripple would be forced to focus on winning its appeal, which would slow down the growth of Ripple.
Ripple does not plan to appeal but Will the SEC do so?
Ripple publicly stated They did not intend to appeal the fines they had to pay. But the SEC still hasn’t decided whether they are going to appeal. Since Ripple’s decision to withdraw their appeal, XRP prices have remained relatively stable, with no significant price changes. Mattew Perry noted that XRP’s daily trading volume is around $1 billion. The current market cap to volume ratio is approximately 3%. Investors would be more hesitant to invest if the regulator was to pursue an appeal.
The SEC decision on whether to appeal is difficult to predict. US House Committee has been scrutinizing SEC’s stance on crypto. Digital assets are gaining in popularity. In order to stop the rapid growth, the SEC can appeal against the Ripple ruling. It is possible that the SEC may not be able to file an appeal on time, and therefore the case will finally come to a conclusion.
If the SEC does not appeal before October 6, XRP’s price could continue to rise. The price of the asset hasn’t surpassed $0.70 since August when it was decided. If the appeal is denied, XRP could return to the path towards $1 before the end of the year 2024. It’s a steep path, but several crypto assets surged during September. If a bullish cryptocurrency market persists beyond the deadline for appeals, XRP might ride on that wave.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: watcher.guru
