Industry watchers say crypto investors were pleased after one of the industry’s longest-held legal battles was overturned by the U.S. Securities and Exchange Commission, but the market appears to account for several months of victory before the announcement.
On March 19, Ripple CEO Brad Garlinghouse announced that the SEC would dismiss legal action against Ripple, ending a four-year lawsuit against blockchain developers for $1.3 billion in unregistered securities in 2020.
However, the outcome may not be “bulky” as the market may have already set prices on this development since President Trump’s election, according to Dmitrij Radin, founder of Zekret and chief technology officer at Fideum, a system-focused regulatory and blockchain infrastructure company.
The CEO of Ripple said the SEC is removing the lawsuit against blockchain developers. Source: Brad Garlinghouse
“Yes, they’re dropping the case, but they’ve already had a complaint,” he told Cointelegraph on March 20th at the ChainReaction X Show.
“One of the most talked about and oldest cases in Crypto has been acquired. It’s perfect for markets and ripples as it can start expanding in the US. But it’s generally already priced. There’s no major impact on price or market.”
XRP/USD, 1 month chart. Source: Cointelegraph Markets Pro
Despite the 11% relief rally since the March 19th announcement, the XRP (XRP) token cannot exceed the psychological mark of key $2.5. Tokens have fallen more than 6.3% since March 19th, Cointelegraph Markets Pro Data shows.
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SEC Drop Ripple Case “Already Expected” – Nansen Analyst
Other analysts also attribute the lack of momentum in XRP tokens to investors who are hoping to end the SEC lawsuit against Ripple Labs, which generally combines market sentiment.
“I think it comes from a market that is already priced similarly to the general market situation,” Nansen research analyst Nikolai Sondergaard told Cointelegraph, adding:
“The macro environment and general uncertainty are not running XRP as it was already honestly expected at this point.”
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Still, some technical chart patterns show the possibility of a 75% XRP rally after the SEC lawsuit ends.
XRP/USD weekly price chart. Source: TradingView
As of March 21, the XRP bouncing off after testing the lower trend line of the triangle and rose towards the upper trend line every April. The ultimate goal for this potential breakout was $4.35 by June, up 75% from the current price level.
Conversely, if you fall below the low trendline, bullish setups will be disabled, and XRP may set XRP towards $1.28. Bearish targets are obtained by subtracting the maximum height of the triangle by $2.35 from the potential failure point.
Despite the price trajectory of XRP, the SEC has reversed the case, making long-term impact on the market due to narrative changes, and investors’ expectations for a more crypto-friendly SEC have added fideum’s raden.
https://www.youtube.com/watch?v=2Exstn1krcu
Magazine: SEC U-turn on Crypto leaves important questions unanswered
