XRP is back in the spotlight as recent developments within the SEC fuel optimism in the crypto community. The SEC’s decision to transfer Jorge Tenreiro, a key litigator in the Ripple case, to its IT department has sent ripples through the market. Tenreiro played a major role in several lawsuits against crypto firms, including Ripple and Coinbase. His reassignment, alongside another lawyer involved in restrictive crypto regulations, suggests a shift in the SEC’s approach.
This shake-up comes after Gary Gensler’s departure from the SEC. Gensler led the agency’s aggressive stance against crypto with his “regulation by enforcement” strategy. Under the new acting Chair, Mark Uyeda, the SEC is downsizing its Crypto and Cyber Unit. The reduction hints at a potential end to the SEC’s appeal against Ripple, a move that could significantly boost XRP’s price.
SEC Commissioner Hester Peirce, now heading the agency’s Crypto Task Force, has also indicated a softer approach. Peirce announced that the task force will review which crypto assets qualify as securities. If XRP escapes the securities classification, it could mark the end of its legal battle with the SEC.
On the technical side, XRP trades within a descending broadening wedge, a bullish pattern signaling potential reversal. Despite a 3% dip recently, XRP’s ability to hold the lower wedge boundary is crucial. A successful bounce could trigger a rally towards $4.00, surpassing key resistance levels at $2.72, $2.95, $3.40, and $3.55.
However, the road isn’t without challenges. XRP faces strong resistance near the 14-day Exponential Moving Average (EMA). Momentum indicators like RSI, Stochastic Oscillator, and MACD are below neutral levels, reflecting bearish sentiment. A break above these levels would strengthen the bullish outlook.
If XRP fails to hold the lower wedge support, it could drop to $1.35. But with legal hurdles potentially clearing and technical indicators hinting at a reversal, XRP might just be poised for a powerful comeback. The next few weeks could be pivotal for Ripple and its investors.
