- XRP price held steady above key support at $0.50 despite a bearish turn of events where the altcoin was dropped off NYDFS greenlist.
- Ripple’s XRP token security status is likely at risk as SEC works on its interlocutory appeal to overturn Judge Torres’ ruling.
- XRP price needs to sustain above the August low to climb to its $1.31 bullish target, according to a crypto analyst.
XRP price sustained above critical support at $0.50, fueling a recovery in the altcoin. The recent bearish catalysts in the market threatened the asset’s recovery. Early on Monday, the New York State Department of Financial Services (NYDFS) dropped all cryptocurrencies except Bitcoin, Ethereum and stablecoins from its “greenlist.”
Ripple XRP was among one of the assets dropped from the list. While XRP holders and market participants expected a negative impact on the altcoin’s price, the asset continued its recovery and analysts set a target of $1.31 for the cryptocurrency.
Also read: New York financial regulator to set higher standards for token listing, delisting
XRP removed from New York financial regulator’s greenlist
Ripple’s XRP token removal from the NYDFS’s greenlist on Monday turned out to be a non-event for the altcoin. Market participants noted that except Bitcoin, Ethereum and a handful of stablecoins, no other cryptocurrencies feature on the list.
The move by the New York financial regulator comes at a time when the entity is shifting its stance on crypto assets and firms. Early on Monday, the regulator shared guidance asking virtual asset companies to increase transparency and raise their standards for token listing/ delisting.
XRP price held steady above $0.50, despite these moves by the regulator and analysts shared their bullish predictions for the asset.
XRP price eyes $1.31 target, analyst is long XRP
Pseudonymous crypto analyst @Coins_Kid has set a $1.31 target for XRP over the next few months. The analyst’s bullish thesis stands if the altcoin’s price climbs above the August low. A drop below the $0.4227 level could invalidate the analyst’s prediction.
XRP/USDT one-week price chart
Popular crypto analyst behind the X handle @CryptoKaleo told his 596,400 followers that they are long XRP. Kaleo notes that XRP price (USD pair) found support after complete retracement to pre-July ruling levels, while the BTC pair is on the verge of an High Tight Flag (HTF) breakout.
XRP/BTC four-hour price chart
Kaleo’s thesis is that SEC’s track record in 2023 makes it likely that the interlocutory appeal gets denied and XRP price makes a complete recovery. At the time of writing, XRP price is $0.5099 on Binance, the altcoin yielded 1.39% gains on the day.
SEC vs Ripple lawsuit FAQs
It depends on the transaction, according to a court ruling released on July 14:
For institutional investors or over-the-counter sales, XRP is a security.
For retail investors who bought the token via programmatic sales on exchanges, on-demand liquidity services and other platforms, XRP is not a security.
The United States Securities & Exchange Commission (SEC) accused Ripple and its executives of raising more than $1.3 billion through an unregistered asset offering of the XRP token.
While the judge ruled that programmatic sales aren’t considered securities, sales of XRP tokens to institutional investors are indeed investment contracts. In this last case, Ripple did breach the US securities law and will need to keep litigating over the around $729 million it received under written contracts.
The ruling offers a partial win for both Ripple and the SEC, depending on what one looks at.
Ripple gets a big win over the fact that programmatic sales aren’t considered securities, and this could bode well for the broader crypto sector as most of the assets eyed by the SEC’s crackdown are handled by decentralized entities that sold their tokens mostly to retail investors via exchange platforms, experts say.
Still, the ruling doesn’t help much to answer the key question of what makes a digital asset a security, so it isn’t clear yet if this lawsuit will set precedent for other open cases that affect dozens of digital assets. Topics such as which is the right degree of decentralization to avoid the “security” label or where to draw the line between institutional and programmatic sales are likely to persist.
The SEC has stepped up its enforcement actions toward the blockchain and digital assets industry, filing charges against platforms such as Coinbase or Binance for allegedly violating the US Securities law. The SEC claims that the majority of crypto assets are securities and thus subject to strict regulation.
While defendants can use parts of Ripple’s ruling in their favor, the SEC can also find reasons in it to keep its current strategy of regulation by enforcement.
The court decision is a partial summary judgment. The ruling can be appealed once a final judgment is issued or if the judge allows it before then. The case is in a pretrial phase, in which both Ripple and the SEC still have the chance to settle.
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