Ripple (XRP) fate hangs on a cliff after the judge in the SEC vs LBRY case failed to rule on the status of the LBC token. Following the ruling, XRP price dropped 2.45% on Wednesday from $0.475 to a low of $0.464.
At the time of writing, the remittances token is trading at $0.470 down on the day. The price is consolidating in a bearish triangle that projects further declines toward $0.394 as the journey to $1 gets more and more difficult.
XRP Price Turns Down After SEC vs LBRY Ruling
The final ruling on the SEC vs LBRY case came in on Wednesday and the presiding Judge Paul Barbadoro refused to clarify whether the LBC token, which is at the center of the lawsuit, was a security or not.
The judge exercised judicial restraint, taking a completely different stance on the status of LBC from the one he had taken in January where pro-XRP lawyer John Deaton had persuaded him that secondary market sales did not involve securities.
The SEC vs Ripple case has a similar situation where XRP holders are awaiting Judge Analisa Torres’ ruling that could clarify secondary market sales of the token.
XRP token’s fate, therefore, hangs in the balance until Judge Analisa Torres releases the verdict.
The ruling will definitely have an impact on XRP price given the way it responded to the LBC news.
Currently. Ripple trades in a third straight bearish session as bulls fight to push XRP out of a bearish triangle. Note that a daily candlestick close below the triangle’s support line at $0.460 would confirm the technical chart pattern with the price dropping toward the 200-day Simple Moving Average (SMA) at $0.413.
Breaching this support would trigger massive sell orders that would take the international payments token first toward the $0.411 major support level before reaching the technical target of the prevailing chart pattern at $0.394. This would represent a 16.6% decline from the current price
XRP/USD Daily Chart
Apart from the technical pattern, XRP’s gloomy outlook was validated by the down-facing SMAs and the downward movement of the Relative Strength Index (RSI). The price strength at 4 in the negative region suggested that the market conditions favored the downside.
On the flip side, a daily candlestick close above $0.482, embraced by both the 100-day SMA and the triangle’s resistance line would confirm an upward breakout from the governing chart pattern.
This would open the way for a rise to the 50-day SMA at $0.49. Rising above the level would bolster the bulls to push the cross-border remittances coin toward the major resistance at $0.536 or higher to tag the $0.56 range high.
These are highly ambitious cases that would need support from the broader crypto market and positive developments from the XRP vs. SEC case.
