- Ripple’s reduced XRP sales to institutions amid its SEC lawsuit may be influencing the token’s price.
- Despite legal concerns, projections of XRP breaking key resistance levels indicate possible price increases.
The US Securities and Exchange Commission (SEC) and Ripple have provided the most recent updates. It put the company’s XRP sales strategy under close examination.
The practice of Ripple selling XRP to institutional investors at a discount has been brought to attention by U.S. attorney Fred Rispoli, and it may play a significant role in the token’s low market value.
…have already said the SEC's motion is full of mischaracterizations. Let's hope that is correct because the picture painted is not a good look for Ripple and lends credence to the $XRP haters on why the price is so low. Namely, the deep discounts by Ripple on XRP sales. 3/10
— Fred Rispoli (@freddyriz) March 26, 2024
Ripple v. SEC: A Court Battle
Because of its sales approach, the SEC claims that Ripple violated securities laws and is requiring the company to provide a comprehensive remedy package.
The steep $2 billion fine that is part of the proposed sanctions is something that Ripple’s leaders, Brad Garlinghouse, the CEO, and Chris Larsen, the chairman, are challenging as being out of proportion.
The central claim of the SEC’s case is that Ripple treated some institutional investors better than others by offering discounted XRP sales; this is a practice that was allegedly hidden from the general investing public. And also, to explore this development in more depth, you can watch the YouTube video below.
Forecasts and Market Attitude: A Ray of Hope for Investors
Amidst these legal hurdles, Scient, a crypto expert, offers an optimistic viewpoint, predicting a possible upswing for XRP.
$XRP, Added a big fat spot bag at $0.62 because I think XRP's will soon be trading above $1
• Break and flip of the 1W downtrend
• Break and flip of 1W 200MA to support.Just gonna sit, relax, and not fade 1W bull signals.
Some News should drop soon 😶#XRP #XRPUSDT pic.twitter.com/o8yYd1ysK9
— Scient (@Crypto_Scient) March 23, 2024
Scient believes that XRP may soon break out of its bearish trend on the weekly chart and firmly establish the 200-week moving average as support based on technical analysis. Scient believes that with strategic buying at $0.62, XRP will shortly cross the $1 mark.
This optimistic outlook stands in sharp contrast to Rispoli’s concerns about the long-term impact of Ripple’s discounted institutional sales on the market value of XRP and the company’s reputation.
Retail investors are becoming increasingly concerned that they would act as exit liquidity for institutional buyers who made their entry at a cheaper price, which would complicate the market dynamics for the token.
It is expected that the main thrust of Ripple’s defense plan will be to set itself apart from the SEC’s investigation into its recent XRP sales, particularly those connected to its On-Demand Liquidity (ODL) services.
It is Ripple’s responsibility to clarify these distinctions and lessen the impact of the SEC’s accusations, as previously reported by ETHNews.
Meanwhile, the XRP price has soaring in the last 24 hours and 7 days, by 2.74% and 10.26%, moving to $0,6478.