The XRP (XRP) price jumped more than 20% on Wednesday to the $0.61 area after the judge presiding over the Ripple Labs/SEC lawsuit issued a final ruling.
Judge Torres just ruled that Ripple Labs, the creator of XRP, must pay $125 million in civil penalties and refrain from further violations of securities law, ending a near-four-year battle.
Judge Torres has ruled that Ripple, $XRP, must pay $125M in civil penalties and stop any further violations of securities laws, putting an end to the nearly four-year legal battle it fought with the SEC, per FOX.
The SEC had initially requested a penalty of $2B from Ripple.
— unusual_whales (@unusual_whales) August 7, 2024
That’s substantially less than the $2 billion the SEC requested. In 2020, the US regulatory agency fined Ripple Labs for allegedly issuing XRP as a security.
The final ruling comes after Judge Torres ruled last summer that XRP wasn’t necessarily a security.
This is big news for the XRP market, hence the 20%+ intra-day move.
Regulatory uncertainty has hurt XRP and Ripple Labs’ global crypto business in recent years.
The risk of XRP being labeled as a security and as good as being banned in the USA has been lifted, which should be good for the cryptocurrency’s long-term adoption prospects.
The XRP price is currently up over 40% from Monday’s lows around $0.43.
Huge Bullish Breakout Incoming? Here’s How High the XRP Price Could Go
XRP is yet to break above its recent highs. Indeed, crypto markets currently face a major moment of uncertainty as the US economy tilts towards a recession, which could create an ugly atmosphere for risk assets.
A rebound could be on the cards, assuming recession fears are overblown.
And following the latest positive Ripple/SEC news, the XRP bulls could soon take decisive control.
Bulls hope the XRP price can break above a pennant structure it’s been stuck in since 2022.
That could open the door to a swift pushback towards 2021 highs near $2.0.
That could mean gains of more than 3x for XRP investors who are now in. XRP thus ranks as one of the best cryptos to buy now.
That said, it’s a high-risk bet. The pump in the summer of 2023, on the prior Judge Torres ruling, was eventually sold.
History could repeat itself, especially if XRP fails to break above resistance and US recession fears surge.
Investors should never risk more than they can afford to lose in crypto markets.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
