XRP, the native token of the XRP Ledger, has made headlines in the aftermath of the SEC’s lawsuit against Ripple and the withdrawal of the payment giant’s appeal. The crypto payments firm looks set to expand its stablecoin partnerships and boost XRP utility, both of which could push the altcoin higher.
The SEC vs. Ripple lawsuit has been a decisive legal battle that dragged on for several years, contributing to the altcoin’s de-listing from major crypto exchanges and a prolonged price slump. Ripple Labs CEO Brad Garlinghouse recently tweeted about the firm’s decision to withdraw its appeal and what that means for XRP.
In the last week of June, Ripple CLO Stuart Alderoty noted that Judge Analisa Torres had put the ball back in Ripple’s court. The company was faced with two options: dismiss its appeal challenging the ruling on historic XRP sales to institutions or proceed with the appeal.
The executive explained that in either case, the legal status of XRP as a non-security in secondary market sales, meaning across exchange platforms and in transactions made by retail traders, is unaffected.
Following that, Garlinghouse informed the XRP community that Ripple has chosen to withdraw the appeal. The firm is closing this chapter of the legal battle, while XRP holders now await the SEC’s response.
If the SEC agrees to pull its appeal as well, Ripple will pay a $125 million penalty and move on from the case.
The lawsuit has been a key driver of XRP price movements since the 2018 bull run, so each update has served as a significant catalyst. XRP rallied slightly on the latest news before giving up those gains between June 28 and July 2. As of writing, XRP trades at $2.1814, above the psychologically important $2.00 support level.
XRP is currently consolidating near the $2.00 support. Momentum indicators on the daily chart show a subtle bullish trend. RSI reads 49 and is trending upward, while MACD displays green histogram bars above the neutral line.
XRP could rally 14% and test resistance at the upper boundary of the FVG on the daily price chart, at R1, $2.50. The second key resistance is R2, $2.65. The psychologically important level of $3 kicks in once XRP sees a daily candlestick close above R1 and R2.
Support levels at S1, S2, $1.90 and $1.77 are important zones where XRP could collect liquidity in the event of a price decline in July.
Financial services infrastructure firm OpenPayd is working to embed Ripple’s stablecoin and blockchain network to power faster payments and fiat-to-stablecoin conversion, according to a July 2 announcement.
Meanwhile, Peersyst Technologies launched an XRPLedger sidechain compatible with Eethereum (ETH)-based dApps dApps, further expanding adoption of XRP. News of the mainnet launch fueled bullish sentiment in the XRP community.
The EVM sidechain launch attracted interested parties like Wormhole, an interoperability platform that partnered with Ripple to make the XRPLedger multichain. Wormhole is set to onboard over six million users to the XRPLedger and to function as the core interoperability platform for the payment giant’s blockchain.
The XRPLedger sidechain launch, Ripple’s decision to withdraw its appeal in the SEC lawsuit, and the growing number of stablecoin and blockchain integrations are the top three catalysts likely to drive a new XRP rally.
Crypto analyst @CryptoDonAlt, known for accurately timing previous XRP bull runs, tweeted on July 1 that “round 2” of XRP’s price rally may be on the horizon, fueling speculation among retail traders and holders.
XRP remains one of the top three altcoins and has historically responded to Ripple’s ecosystem developments and legal updates. New partnerships and stablecoin-related integrations are likely to boost XRP Ledger utility, which in turn fuels demand for the token.
Between the lines: XRP seems to follow in Bitcoin’s (BTC) footsteps, rallying alongside the king crypto and correcting during BTC’s consolidation phases. The addition of XRP to corporate treasuries may therefore be influenced by Strategy’s Bitcoin allocation playbook.
