NEW DELHI (CoinChapter.com) — Ripple’s legal battles continue to haunt XRP price as it fails to start a rally following Jan. 8’s 6% spike to $0.58. The fintech firm won one of its legal battles against the US SEC in 2023, but the path ahead remains rough for XRP.
Legal Battles and Gensler’s Warning Could Hurt Ripple
The US Securities and Exchange Commission chair, Gary Gensler, took to social media to offer some investment “advice,” which was more of a warning against investing in crypto.
Gensler cautioned in his post that crypto offerings and services might not adhere to federal securities laws. As such, investors might be potentially deprived of essential information and protections.
The SEC chair also reverted to his old tune of the crypto sector being a scam, claiming scammers exploit crypto’s popularity through fake offerings, thefts, etc.
Investment firm Grayscale recently re-included XRP as a component asset in its Grayscale Digital Large Cap (GDLC) fund. The firm has removed XRP following Ripple’s legal battle against the SEC.
Grayscale has adjusted GDLC’s portfolio by selling certain amounts of the existing Fund Components in proportion to their respective weightings, and using the cash proceeds to purchase Avalanche (AVAX) and XRP
Grayscale said in its announcement
XRP’s inclusion came at the cost of Polygon’s MATIC token, which Grayscale removed from its GDLC fund. The news sparked rumors of an XRP ETF in the works, with some social media posts claiming Blackrock might be filing an application for an XRP ETF “within days.“
Although neither Ripple nor any investment firm has revealed any plans of an ETF, Gensler’s comments at the time would likely hurt XRP price. Furthermore, the Zakinov vs Ripple lawsuit’s court hearing on Jan. 11 could be pivotal for the token.
The Zakinov vs Ripple case is a significant legal battle involving Ripple Labs and XRP holders. A crucial aspect of this case is the classification of XRP as a security, similar to the SEC-Ripple lawsuit.
The Jan 11th court hearing in the Zakinov vs Ripple Labs case is vital since it addresses the motion for class notice approval. Additionally, the outcome of this case could significantly influence the SEC vs Ripple case and vice versa.
XRP Price Fails To Continue Uptrend
XRP price dropped nearly 3% to reach a daily low near $0.56 on Jan. 9, as buyers sit on the sidelines awaiting the Jan. 11 court hearing’s result. Moreover, the token’s 20-day EMA (red wave) and 100-day EMA (blue wave) seem intent on painting a bearish pattern called the death cross.
However, bulls are not giving up as they struggle to keep XRP price above the 200-day EMA (green wave), evident from the long lower wick on the day’s price candle.
If Ripple’s upcoming legal battle doesn’t end in its favor, XRP price might break below the immediate support near $0.55 before testing the support near $0.515.
However, a positive result would strengthen the narrative of a Ripple SEC settlement, pushing XRP price past the 100-day EMA resistance near $0.6 before targeting the resistance near $0.63.
The RSI for XRP remained neutral, with a value of 39.53 on the daily charts.
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