Rising XRP volatility is probably a result of the lingering questions regarding the legal battle between Ripple and the US Securities and Exchange Commission (SEC). Depending on who benefits from further judgments, this volatility might cause the asset to surpass the $0.40 level or to fall to $0.35.
Since the beginning of the month, XRP has been in a phase of consolidation as price movements, and on-chain indicators progressively moved to the bearish side, with the asset losing four of the previous five sessions. Following the SEC and Ripple reply briefings, fxcryptonews noted the potential for consolidation below the $0.40 area because of the numerous uncertainties.
Several Uncertainties Surround Ripple v SEC
A redacted version of Ripple’s reply brief to the SEC’s opposition to its application for summary judgment was published by defense attorney James Filan on December 2. The response claims that the regulatory watchdog affirmed in its brief that it could not demonstrate a common enterprise or a financial investment.
The XRP camp and the larger cryptocurrency community are looking forward to developments on the case now that both parties have submitted their reply briefs, as the next court date is set for December 22. The growing uncertainty has impacted XRP’s price trajectory due to the lack of any noteworthy reports, adding to mounting volatility and demonstrating bearish indicators.
The positive feelings based on the reply briefs have been put on hold, and investor concern is growing because the SEC has not yet made a step toward settlement. This has caused XRP to go below $0.39. However, if the regulator believes the case is tilting more in Ripple’s favour, expectations of an SEC settlement may be met.
“This is our final submission where we ask the court to grant judgment in our favor. After two long years, Ripple is proud of the defense we’ve mounted on behalf of the entire crypto industry. We have always played it straight with the Court. Can’t say the same for our adversary,” Stuart Alderoty, General Counsel at Ripple, commented on the reply briefs last Friday.