After four days of losses, XRP fell to a crucial resistance level that turned into support at $2.17. Although the downtrend continues, there are signs that it may decline, suggesting that a significant change in market sentiment may be imminent. XRP is not in a bad position overall, even with the recent decline.
Over the past several months, the currency has maintained a strong uptrend, and the current pullback appears to be a natural correction rather than a complete meltdown. With the price now moving at a significant resistance level, traders are keeping a close eye on XRP to see what it will do next. Here are the three most likely scenarios. A rebound from the $2.17 support level, which would start a recovery march, is one possible scenario.
XRP may return to the $2.60-2.73 range where the EMA 50 average is currently located if this scenario materializes. In addition to confirming strength, a successful recovering of this level may pave the way for a subsequent attempt to break the $3.00 level in the coming weeks. If buyers enter the market but do not move quickly, XRP may stop in its current range. The future movement may start with a sideways consolidation period between $2.17 and $2.40.
The market will be able to stabilize and accumulate enough volume for a possible breakout in any direction as a result. In a worst-case scenario, XRP will lose the $2.17 level altogether, which could push it to the historically high support level of $1.63. Although it is not the best option for bulls, it is probably the last line of defense before buyers intervene aggressively to stop a sharper decline.
Despite the fact that XRP has been suffering recently, the downtrend is slowing down, which can be a good thing.
Legal audit presses the JSC on XRP
XRP remains under pressure as the SEC is under legal scrutiny to investigate conflicts of interest in cryptocurrencies. The outcome may affect the regulator’s appeal in the Ripple case, affecting the trajectory of XRP’s price.
SEC Under Legal Fire – Can It Drop XRP’s Appeal?
The U.S. Securities and Exchange Commission (SEC) is facing increasing legal pressure as it challenges a new lawsuit that handles a cryptocurrency-related conflict of interest investigation. On Wednesday, February 5, whistleblower group Empower Oversight filed a lawsuit against the SEC, accusing it of withholding crucial documents related to an internal investigation into former SEC Director William Hinman.
Today’s lawsuit seeks to force the agency to issue the report since its completion by the Securities and Exchange Commission’s Office of the Inspector General (SEC OIG). The lawsuit also seeks all documents related to the investigation of William Hinman, former director of the Securities and Exchange Commission’s corporate finance division, and potential conflicts of interest.”
The lawsuit alleges that the SEC ignored multiple requests under the Freedom of Information Act (FOIA) in pursuit of transparency. Fox Business’s Eleanor Terret also filed a Freedom of Information Act application in December, increasing pressure on regulators to disclose the findings of the Office of the Inspector General (OIG).
How the SEC investigation might affect XRP
The inspector general’s investigation focuses on allegations that William Henman received millions of dollars in payments from Simpson Thatcher, a law firm linked to Enterprise Ethereum while overseeing the SEC’s crypto regulations. In 2018, Henman publicly stated that Bitcoin (BTC) and Ethereum (ETH) They are not securities, which largely shaped the regulatory position of the Securities and Exchange Commission.
Conflict of interest affects the future of XRP and its price
Court documents from the Ripple case revealed that Henman continued to interact with Simpson’s Thatcher employees despite warnings from the SEC Ethics Department. These discoveries raise concerns about potential conflicts of interest, which could ultimately affect the SEC’s decision on its appeal in the XRP case.
If the IGO findings confirm a conflict of interest, the SEC may come under pressure to withdraw its appeal, which could significantly affect the legal status of XRP and market performance.
XRP Price Conflicts amid Uncertainty over SEC Appeal
Legal uncertainty surrounding the SEC’s appeal has significantly impacted the price of XRP. On Thursday, February 6, XRP fell 2.34%, extending its three-day losing streak. The decline followed a 5.8% decline on Wednesday, bringing the XRP’s closing price to $2.3260.
XRP underperformed the broader cryptocurrency market, which saw a decline of 0.96%, bringing the total market capitalization to $3.09 trillion. The ongoing Ripple issue remains a key driver of XRP price action, with investors closely watching the SEC’s next move.
(SEC OIG) The lawsuit also seeks to obtain all documents related to the investigation of William Henman, former director of the SEC’s corporate finance division, and potential conflicts of interest.
Analysts suggest that if the SEC withdraws its appeal, the price of XRP could rise beyond an all-time high of $3.5505. However, if the regulator continues to appeal, the XRP risks falling below $1.50. The upcoming trading sessions are critical because the current resistance test will affect whether XRP recovers, consolidates, or is heading lower.
