XRP Price At Risk? SEC Chair’s Congressional Testimony Fuels Ripple’s Legal Battle
The cryptocurrency sector, particularly Ripple Labs, has been embroiled in a scenario of concern and uncertainty following a contentious exchange between the US Securities and Exchange Commission’s (SEC) chair, Gary Gensler, and the House Financial Services Committee in Congress which could affect the XRP price.
Despite Ripple’s partial legal victory against the SEC, Gensler’s stance remains unchanged, as he emphasized the regulatory body’s determination to pursue an interlocutory appeal in the ongoing case. This has raised further questions and apprehension within the industry.
Congressman Highlights Ripple Case’s Far-From-Over Status
During the hearing, Congressman Stephen F. Lynch expressed his concern about the potential pattern whereby court battles become the norm to determine the classification of individual tokens as securities.
While Gensler did not respond directly, he mentioned the SEC’s filing for an interlocutory appeal, highlighting the regulator’s intent to continue the legal battle. Lynch acknowledged that the case is far from over.
On August 17, Judge Torres granted the SEC’s request to file an interlocutory appeal, granting the regulatory body an opportunity to present a compelling case to the Second Circuit.
However, it’s important to note that this permission only allows the SEC to file the motion for an interlocutory appeal, presenting a significant opening for the regulator to challenge the previous ruling and seek a different outcome.
These recent developments, as highlighted by Congressman Lynch, indicate that the ongoing Ripple case may take considerable time to resolve.
As a result, XRP is likely to remain stagnant, trapped in a consolidation phase, or potentially retracing beyond its current levels. This could potentially push the cryptocurrency to pursue another annual low, extending beyond the $0.4225 mark reached on August 17.
XRP Price Analysis Points To Potential Macro Uptrend
Despite the legal battles and the uncertainty surrounding the current state of the crypto market, some signs might point to a different scenario, where XRP could follow a macro uptrend.
Technical analysis highlights a pattern resembling the last market cycle, which consists of five phases: rise, crash, retrace, reaccumulation, and eventual breakout.
Drawing parallels to previous cycles, many coins have experienced explosive growth beyond their previous all-time highs after the reaccumulation phase.
For instance, Bitcoin went through its reaccumulation phase during the COVID-19 pandemic. Still, due to the ongoing lawsuit, XRP has entered a more prolonged reaccumulation phase in the form of an Elliott wave triangle, similar to the previous cycle.
Currently, the market is in phase E, which suggests a potential retracement upwards, followed by another dip to lower levels. Eventually, there is anticipation for a breakout from this massive triangle, leading to a new all-time high likely to occur next year or the year after.
While some argue that the XRP price fate depends on Bitcoin’s performance, it is worth noting that when comparing XRP to BTC, it is also within an accumulation range and exhibits a bullish outlook. From this perspective, XRP is expected to outperform other alternative coins significantly.
However, for the XRP price to sustain an extended uptrend in the near term, it must overcome significant resistance levels that pose potential challenges. In the immediate time frame, XRP faces a resistance at $0.5132, followed by two additional formidable barriers, which are expected to be particularly challenging in the coming weeks.
XRP’s 50-day and 200-day Moving Averages (MAs) are currently positioned at $0.5194 and $0.5318, respectively. These MAs, once considered reliable support levels, have failed to hold, necessitating a significant catalyst for XRP to surpass them.
This is evident in the chart, depicting the partial victory on July 13, when XRP surged above both MAs. However, since August, XRP has been trading below them.
Featured image from Shutterstock, chart from TradingView.com
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US Crypto Exchange Kraken Wins ‘Milestone’ Regulatory Approvals in Europe
Cryptocurrency exchange Kraken announced new achievements in implementing its strategy to pursue expansion on the European market. The U.S. trading platform for digital assets said it has received regulatory nods from the monetary authorities of Ireland and Spain, two of the EU nations with relatively clear rules for the industry.
Another Major U.S. Crypto Exchange, Kraken, Strides On With European Expansion
Digital asset exchange Kraken has obtained authorization from the Central Bank of Ireland as an e-money institution (EMI) and has registered with the Bank of Spain as a virtual asset service provider (VASP). In a press release on Tuesday, the San Francisco-based company emphasized that the regulatory approvals highlight its commitment to growing its business in Europe.
With the EMI license, which has been granted to Kraken’s subsidiary in Ireland, the exchange will be able to partner with European banks in order to expand its euro fiat services for clients in the EU’s 27 member states as well as the countries in the European Economic Area (EEA), which form a key growth region for the American crypto firm.
Kraken further explained that the VASP registration with Spain’s central bank allows it to provide cryptocurrency exchange and custodial wallet services to residents of the country. The exchange has already received similar registrations in Ireland and Italy and considers these a “testament to its ongoing commitment to regulatory compliance.”
“Today’s announcement marks another important milestone in our European expansion strategy,” said Curtis Ting, Kraken’s vice president of global operations. He pointed out that the company is excited to become part of the local fintech sectors in the two countries and looks forward to continuing its European investments. Ting also stated:
We see a firm foundation for crypto in Europe, which has forward-looking regulation that enables us to grow with confidence. We are grateful for the constructive approach to regulating industry growth set by the Central Bank of Ireland and the Bank of Spain.
Kraken’s push to expand on the Old Continent, which is preparing to implement its new Markets in Crypto Assets (MiCA) legislation, is not an isolated effort among U.S. exchanges. Earlier in September, America’s leading crypto trading platform, Coinbase, indicated in a blog post that it intends to focus on growing in markets that have clear crypto regulations.
Coinbase provided as an example of the opposite the United States, where government agencies have taken the path of enforcing existing rules through courts. This week, Coinbase announced it has obtained a Spanish registration, too, and a report unveiled it has tried to buy FTX Europe for its derivatives business.
As one of the world’s longest-standing crypto platforms, Kraken highlighted its “robust security and excellent client service that spans more than a decade.” Curtis Ting emphasized that these features, coupled with Kraken’s leading position in liquidity and volume for euro-crypto pairs, “bring a compelling value proposition for future clients in Europe” and vowed that the exchange will continue to work to advance crypto adoption in the region.
Do you think other U.S. crypto companies will also seek to expand their business in Europe? Share your expectations in the comments section below.
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