Key Takeaways:
- The Ripple-SEC lawsuit might face delays.
- XRP price has been moving laterally since Sept. 19 after exhausting its 8-day-long rally.
- The Ripple token has formed a bullish technical pattern.
NEW DELHI (CoinChapter.com) — The SEC Ripple lawsuit might risk delays due to fears of the US government shutting down if Congress fails to allocate funding for the new fiscal year starting Oct. 1.
The Congress allocates for 438 government agencies every year by Sept. 30. However, if lawmakers fail to pass the bill, the agencies would find it difficult to operate normally. Per the Congressional Research Service, the US government has shut down 14 times since 1981.
For now, the federal courts have enough money to operate until Oct. 13, after which activities would be scaled back. An extended shutdown could delay a ruling on the SEC’s motion for interlocutory appeal, resulting in an XRP price crash.
Furthermore, the shutdown would also impact the Securities and Exchange Commission, with the SEC chief noting that the shutdown could impair the agency’s oversight capabilities.
Why The SEC Might Appeal The XRP Lawsuit
Attorney Bill Morgan and securities law specialist Marc Fagel took to X to discuss why the regulatory watchdog appealed the SEC Ripple lawsuit.
Morgan and Fagel delved into the discussion while commenting on the mention of the SEC XRP lawsuit in the ongoing Binance SEC legal battle.
The co-defendants in the Binance SEC lawsuit made a mention of the SEC XRP lawsuit to leverage Judge Anissa Torres’ opinion about transactions on secondary exchanges.
Morgan speculated if the court would endorse Judge Torres’ stance on programmatic sales. Moreover, the attorney wondered if the SEC’s interlocutory appeal might stem from the possibility of other defendants facing similar charges using Judge Torres’ decision.
Fagel agreed with Morgan, explaining that the decision to pursue an appeal was likely due to its broader implications for the SEC’s stance against crypto exchanges.
Meanwhile, Ripple CEO Brad Garlinghouse shared in the Messari Mainnet 2023 event that Ripple likely plans to not go for a settlement.
Everything the SEC cares about, they lost… A freight train was driven through Gensler’s arguments that these are all securities.
Garlinghouse said
Pro XRP lawyer John Deaton stated that the SEC would not go for a settlement since any potential settlement would harm other crypto-related lawsuits.
XRP Crypto Price Forms Bullish Pattern
The XRP cryptocurrency price has formed a bullish technical pattern called the ‘Falling Wedge.’
The technical pattern forms when the price fluctuates inside a pair of falling trendlines that converge down the slope. The outcome of such downside patterns is typically a price breakout to the upside. One key feature of the pattern is that volumes usually decline as the trendlines converge.
The upside target for the breakout is equal to the maximum distance between the falling wedge’s upper and lower trendlines. Thus, confirming the pattern could help the XRP crypto price rally 501% to reach the theoretical price target of $3.06
XRP Price Crabbing
The XRP crypto token price has been crabbing since Sept. 19 as traders continue to sit on the sidelines as they await more XRP lawsuit news. On Sept. 24, the Ripple crypto token price rallied by a meager 1% to reach a daily high near $0.512.
If the SEC decides to file the interlocutory appeals, the XRP price might crash below the 20-day EMA (red wave) dynamic support to drop to $0.473.
Failure of the immediate support might force XRP crypto price to test the support near $0.434.
However, if the XRP cryptocurrency price starts rallying, the token might cross above the 200-day EMA (green wave) and reach the 50-day EMA (purple wave) resistance near $0.532. Breaking and consolidating above the immediate resistance to target the resistance near $0.577.
The RSI for XRP remained neutral, with a score of 49.25 on the daily charts.
