Ripple (XRP) Lawsuit Nears Resolution as Judge Prepares to Rule, Whales Distribute Holdings

Ripple's legal battle with the Securities and Exchange Commission (SEC) could be resolved soon, according to Attorney Fred Rispoli.

Payment remittance firm Ripple's legal battle with the Securities and Exchange Commission (SEC) over XRP sales might be nearing its conclusion, according to Attorney Fred Rispoli.

Recently, Ripple filed a supplemental authority letter in the case, referencing a ruling in the Binance lawsuit. This development has raised expectations among XRP holders for an imminent resolution.

In a legal dispute that has spanned two years, the SEC filed a lawsuit against Ripple in December 2020, alleging that the firm’s sales of XRP violated federal securities law. The outcome of this case will have significant implications for the crypto market, especially regarding the classification and regulation of digital assets.

Ripple's letter to Judge Analisa Torres highlighted Judge Amy Berman Jackson's ruling in the SEC vs. Binance case, which focused on secondary market sales of cryptocurrencies. The SEC filed a response, maintaining its stance on the primary offering nature of Ripple's XRP sales.

According to Rispoli, Judge Torres could issue a ruling as early as July 13. "July 31 is also possible, but July 13 would be poetic," Rispoli noted in his post on July 2. His comments have further fueled anticipation surrounding the case.

Are Retail Investors Betting Big on XRP Amid Legal Uncertainty?

On-chain metrics indicate that whales are distributing their XRP holdings as retail investors are buying the altcoin. According to Santiment data, XRP supply distribution has changed since July 1, with large holders reducing their positions.

This shift in market behavior showcases differing perspectives on XRP's future in the midst of the lawsuit's uncertainty.

Data platform Blockchair reported a series of XRP transactions on exchanges on Monday. In one transaction, over 10 million XRP tokens, worth at least $4.2 million at current prices, moved from Binance to an unknown wallet. In another transaction, more than 3.6 million XRP tokens, valued at least at $1.45 million, moved from Bitstamp to Binance.

CoinShares reported that inflows into XRP ETPs soared by more than $400,000 last week, bringing the total to over $18.4 million since the beginning of the year. This surge placed XRP-related investment products at the top of the charts, alongside Solana, Polkadot, and Litecoin.

Last week also saw the launch of the new Virtune XRP ETP on Nasdaq Stockholm.

Ripple's XRP Faces Potential Decline Amid Bearish Indicators

At the time of writing, XRP trades at $0.414, down 1% in the past 24 hours. If daily closes fall below $0.413, a potential 15% crash to the March 12, 2023 low of $0.347 could occur. Ripple has declined since March 11, dropping from a local peak of $0.7440 to a low of $0.3823 on July 5. However, it has since rebounded to $0.4352.

The Relative Strength Index (RSI) and Awesome Oscillator (AO) on the daily chart indicate bearish momentum. Both indicators are below their respective neutral levels of 50 and zero, suggesting continued downward pressure on XRP's price.

Despite the bearish outlook, analyst Dark Defender predicts a significant XRP rally based on historical patterns. He identifies initial resistance at $0.50, with further targets at $1.88, $5.85, and $18.22. The Ichimoku Cloud indicator and RSI trends could signal a bullish breakout, especially if XRP reclaims critical support at $0.40.

The SEC's classification of Ripple's XRP sales as unregistered securities offerings will be crucial in determining the final legal outcome. A resolution could involve a settlement or fine, impacting Ripple's operations and XRP's regulatory status.

Analysts expect the decision by the end of July to provide much-needed clarity to the market.

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