The Ripple (XRP) price is approaching a critical resistance level, placing it in a pivotal situation. The upcoming October 7 deadline for the US SEC appeal will determine whether XRP will experience a significant decline or rise. While many in the XRP community are optimistic that the SEC will not file an appeal, a former SEC Lawyer and a prominent pro-XRP attorney hold the belief that an appeal from the SEC is likely.
Potential XRP Price Adjustment Expected as SEC Appeal Looms
The Ripple vs. SEC legal battle continues to be a topic of interest following Judge Analisa Torres’ ruling favoring Ripple in July 2023. The focus has now shifted to discussions surrounding a possible appeal by the SEC against the ruling. Despite the confidence within the XRP community that an appeal will not be lodged by the SEC, insights from two experts suggest the contrary.
According to a post by Fox Journalist Eleanor Terette, a former SEC lawyer conveyed the likelihood that the SEC will challenge the July 2023 ruling. The ex-SEC employee stated, “Everyone at the SEC truly believes that the decision is incorrect, represents poor legal judgment, and warrants an appeal.”
Pro-XRP lawyer John Deaton, echoing sentiments shared by Eleanor Terette, and the former SEC Lawyer, indicated the probability of an appeal by SEC Chair Gary Gensler. Deaton highlighted that even if an appellate court rules against Judge Torres, the SEC’s case is weak concerning the “common enterprise” aspect, a point that Judge Torres did not need to address given the circumstances of the Howey Test’s third prong.
In spite of the differing opinions, both John Deaton and the pro-XRP attorney anticipate an SEC appeal before the October 7 deadline.
Forecasting a 25% Decline in XRP Price Due to SEC Appeal
Following the crash on September 6, XRP has rebounded by 23% and is currently valued at $0.618. Although an upward trend seems improbable at this stage, predictions for XRP price suggest that a correction is imminent.
Two factors suggest a potential decline in XRP price:
- XRP is trading below the $0.639 resistance level, which has hindered a breakout for seven months. The yearly VWAP level closely aligns with this resistance, making it a formidable barrier to overcome.
- The expectation of an SEC appeal is acting as a deterrent, dissuading buyers and potentially preventing a substantial rise in XRP price.
Considering these factors, Ripple’s price may face a significant decline soon. Investors are advised to monitor the $0.639 resistance level closely as rejection could lead to a 25% retreat to the $0.469 support level.
Indicators such as the Relative Strength Index (RSI) and Awesome Oscillator (AO) have been hovering around their respective mean levels of 50 and 0 for several days, indicating uncertainty in the market. The looming SEC appeal could be the catalyst for a downturn or a surge in XRP price.
Conversely, a successful flip of the $0.635 resistance level to a support level would signal strength in XRP’s price. Such a scenario could occur if the SEC decides against appealing. In that case, Ripple might breach $0.636 and target a 12% rally towards the $0.714 barrier.
The article Expert Lawyer Predicts SEC Will Appeal as XRP Price Risks 25% Crash was originally published on CoinGape.