- SEC leadership shift could potentially influence Ripple’s lawsuit and XRP’s market demand.
- XRP price faces consolidation, with key support at $2.00 and resistance at $2.50.
- Bitcoin surges above the $106,000 mark, amid speculation of the U.S. strategic reserve fund.
The legal battle between the SEC and Ripple Labs has garnered significant attention, with speculation rising about the agency’s next step. With the deadline set at January 15, 2025, the SEC has to file an opening appeal brief, just days before Chair Gary Gensler leaves the agency. Amid growing scrutiny, critics have raised concerns about the SEC’s legal strategies and resource allocation.
Growing Criticism of SEC’s Legal Strategy
Over the weekend, critics raised concerns about the SEC’s track record, accusing the agency of pursuing legal positions that fail in federal courts. Republican commentator Vivek Ramaswamy criticized the agency for bending rules to achieve desired outcomes, which undermines public trust in the legal system.
Similarly, Ripple’s Chief Legal Officer Stuart Alderoty stated that the SEC’s approach took precedence over the law itself.
These criticisms align with observations from Judge Analisa Torres, who presided over the Ripple case, where the SEC’s legal stance appeared inconsistent with its regulatory obligations. Consequently, market participants believe that Gensler’s imminent departure could shift the agency’s approach to cryptocurrency-related cases.
Internal Dynamics Could Shift SEC Appeal Outcome
The SEC’s internal dynamics remain a critical factor in determining its next steps. Recent reports suggest that the agency is preparing to proceed with its opening appeal brief. However, Gensler’s departure and a potential leadership change could influence the agency’s decision. Paul Atkins, a Republican and a known advocate for crypto-friendly policies, is expected to take over as SEC Chair.
The SEC’s composition may also shift significantly if Commissioner Caroline Crenshaw’s reappointment vote fails on Wednesday. Crenshaw, a Democrat and Gensler ally, has consistently opposed BTC spot ETFs. A Republican-led majority under Atkins could increase the likelihood of the SEC withdrawing its Ripple appeal, a move that would boost investor sentiment around XRP.
Ripple’s Price and Market Sentiment
Affected by the Ripple case, its token XRP experienced volatility in the market. As of press time, it is trading at $2.39, with a total volume traded within 24 hours exceeding $6.6 billion.
The price recently experienced an upward surge in November but has since consolidated around the $2.40 to $2.50 range. The key support levels for XRP are at $2.00 and $2.20, while the $2.50 mark remains a critical resistance level.
RSI stands at level 50, which means a neutral to slightly bullish signal while MACD is declining suggesting short term bearishness.
However, these price movements are associated with market sentiment regarding XRP depending on the fate of the Ripple case. Should the appeal be withdrawn, there are high chances that the XRP price will move upwards as traders wait for more regulatory action.
Bitcoin’s Surge Amid Speculation
On the other hand, Bitcoin has hit new highs and touched $106,000. This upsurge is driven by rumors of the incoming President-elect Donald Trump, unveiling plans to include Bitcoin as one of the country’s reserve currencies.
The United States government is further enhancing Bitcoin, suggesting that demand-side shifts can powerfully influence the supply-demand equation of Bitcoin, and support the bulls’ column. At publication, Bitcoin is currently valued at $104,597 and the 24-hour trading volume is over $66 billion.
The cryptocurrency has demonstrated consistent bullish pressure. If this level is broken, the next benchmark could be $110,000.
Key support levels are established at $100,000 and $95,000, with RSI approaching the indicator’s overbought position of 70. However, the MACD also shows declining buying pressure, but a bullish crossover pattern may provide a renewed push in the coming days.