XRP’s legal clarity is at risk if the SEC appeals the ruling in the Ripple lawsuit

• The US SEC will “likely” appeal the decision in the July 2023 lawsuit against Ripple, according to a former SEC lawyer.
• Pro-Ripple attorney John Deaton explains why the SEC could lose any appeal and how it could affect XRP’s status as a security.
• XRP is trading broadly flat on Friday after losing more than 1% earlier in the day.

Ripple (XRP) is trading with minor losses on Friday as holders weigh the impact of a possible US Securities and Exchange Commission (SEC) appeal in the Ripple lawsuit.

While the final judgment in SEC vs. Ripple was considered a partial victory for both sides, with Fox Business journalist Eleanor Terret telling X that the regulator is likely to appeal, citing a former SEC attorney as a source. A challenge could affect the price of XRP as it calls into question the legal clarity of the altcoin as an insecurity in transactions on crypto exchange platforms.

Daily Market Reasons: XRP’s legal clarity is at risk

• A former SEC attorney told Fox Business journalist Eleanor Terret that the SEC will “probably” appeal the lawsuit decision, raising concerns among XRP traders.

• The SEC vs. Ripple ended on what was considered a positive note for both parties. While the regulator obtained more than twelve times Ripple’s proposed penalty ($125 million vs. $10 million), Ripple continued to operate and obtained legal clarity regarding XRP as a non-security when it was sold through exchanges.
• In July 2023, Judge Analisa Torres ruled that XRP is not collateral in its transactions on cryptocurrency exchanges. However, if the SEC appeals, it calls into question the legal clarity of XRP as a non-security and asks the judge to re-apply the Howey test to determine whether it meets the criteria to be considered a security, said pro-crypto attorney John Deaton . X.
• Deaton concludes that it would be “a total waste of taxpayers’ money” to go through with the appeal because XRP does not meet the requirements of the Howey test, specifically the “joint enterprise” factor, making it unlikely that the SEC appeal will change the original value. deciding

• However, the uncertainty surrounding the lawsuit could weigh on sentiment among XRP traders as they digest the possible outcomes of an appeal.

Technical Analysis: XRP could sweep liquidity at $0.5581

XRP has been in a downtrend for several months, but the altcoin has traded sideways in recent days, generally holding above key support at $0.5800.

The MACD (Moving Average Convergence Divergence) indicator shows that there is an underlying positive momentum in the XRP price trend, however, the green histogram bars are getting shorter, which means it is likely to go lower. The MACD line could cross below the signal line, making it a bearish sign for traders to watch out for.

On the downside, XRP could sweep liquidity to $0.5581, a key level that acted as support throughout September. If it fails to hold this level, the next support appears in the fair value gap (FVG) between $0.5413 and $0.5556.

In a positive scenario, XRP could rise towards the $0.6200 level, the upper limit of an FVG and a key resistance for the altcoin, once it sweeps liquidity into the imbalance zone.

XRP/USDT Daily Chart