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Key Takeaways:
- XRP jumped 7% on bullish news from the SEC vs Ripple lawsuit.
- SEC dropped charges against two Ripple executives.
- XRP investors still cautious given a slew of macroeconomic challenges.
YEREVAN (CoinChapter.com) — XRP traded at $0.51 on Oct 20, after a 7% gain driven by another Ripple win in Court, as the US Securities and Exchange Commission (SEC) dismissed the case against Chief Executive Brad Garlinghouse and Executive Chairman Chris Larsen.
SEC Dropped Charges against Ripple Execs
As CoinChapter reported earlier, the SEC has not yet won the lawsuit. However, dropping charges against two executives initially accused of aiding and abetting Ripple in violating federal securities laws was nonetheless a big win.
The SEC addressed a letter to US District Judge Analisa Torres, formulating their intent.
Plaintiff [SEC] respectfully notifies the Court of the stipulated dismissal of the SEC’s pending claims against Defendants Christian Larsen and Bradley Garlinghouse (Individual Defendants)…Pursuant to […] Federal Rules of Civil Procedure, the parties have stipulated to the dismissal with prejudice of this claim.
Read the letter
Ripple’s Chief Legal Officer called the SEC’s decision a “capitulation,” not a “settlement.” Larsen called the agency “rogue” and called their lawsuit claims “baseless.”
The win came after Judge Torres granted Ripple another major advance on July 13. The Court ruled against SEC’s claims, declaring XRP was NOT a security. Hence, no violation of US securities laws in retail XRP sales.
However, the judge found Ripple guilty of violating securities laws in Institutional sales.
XRP Price Reaction Unenthusiastic
Meanwhile, the XRP price jumped 7% on the news, which is a muted reaction compared to the 80% soar after the mentioned July ruling. Furthermore, the bears started paring gains at approximately 04:00 GMT on Oct 20, after the token’s price action retested its 100-day exponential moving average (100-day EMA green wave) as resistance.
If XRP bulls push for another leg up, the likely price target would stand at a former resistance of $0.54. The line has hindered the coin’s upside moves since September 2022, with the exception of the short-lived July rally. Breaking this resistance could push the coin toward $0.61 before a possible retreat.
However, market participants might remain cautious, given the overall passivity on the crypto market and macroeconomic headwinds, such as several active war zones globally, consecutive fuel price jumps, persisting inflation, etc.
XRP 24-hour and 7-day active addresses did not spike, confirming the holders’ cautious stance.
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