■ Ripple and the SEC are said to be close to a settlement as the regulator is scheduled to hold a closed-door meeting on November 30.
■ Both parties have until February 2024 to come up with a remedy for the current situation, fueling the speculation.
■ XRP price decline has extended to nearly 20% in two weeks, reducing the chances of a recovery.
XRP price was expected to halt the ongoing series of red candlesticks, which have continued to grow and will probably continue going forward. This is the condition of the market despite the potential of Ripple and SEC settling the latter’s lawsuit this month and picking up the heat.
Ripple and SEC to settle soon
Ripple and the Securities & Exchange Commission (SEC) are expected to conclude the ongoing three-year-long lawsuit that began in December 2020. This would be achieved by both parties settling the case since not only has the SEC partially lost the first ruling from the court, but the next one will be held in 2024.
Until then, Ripple has a chance to dig up enough evidence to complete their win in the court trial. The closed-door meeting, called the Sunshine Act Meetings, will be held on November 30 next week.
While the specifics of the subjects to be discussed are not mentioned in the announcement, the subject matters of the closed meeting will consist of the following topics:
● Institution and settlement of injunctive actions
● Institution and settlement of administrative proceedings
● Resolution of litigation claims
● Matters related to litigation
● Other matters relating to examinations and enforcement proceedings
One of these topics is speculated to regard the SEC and Ripple lawsuit.
If that turns out to be true and the two entities put an end to one of the biggest lawsuits in crypto history, it would suggest that XRP price is on the heels of a rally.
XRP price might see a further decline
XRP price might find some difficulty in charting gains even after the settlement of the lawsuit, in part due to the broader market cues turning bearish. The decline noted by the Ripple token in the last two weeks has seen the altcoin fall by almost 19%, bringing XRP below the $0.60 mark.
Looking at the Moving Average Convergence Divergence (MACD), the chances of a bearish move going forward seem more likely. The indicator maintains a bearish crossover with red bars still standing on the histogram.
Thus, if the altcoin sees further decline, a test of the $0.55 support line is likely to follow a failed breach of the $0.59 resistance level. Losing this support would completely wipe out the 31% gain noted in the past month, sending XRP to $0.54.
XRP/USD 1-day chart, Source: TradingView.
However, a successful breach combined with the rising optimism and potential settlement would result in the recovery of XRP price. To ascertain the rally, the $0.60 resistance needs to be flipped into a support floor. This will allow Ripple to tag the next resistance of $0.69, and breaching it would invalidate the bearish thesis, pushing the XRP price beyond $0.70.
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