- Ripple price struggles with recovery after crypto lawyer attorney John Deaton said that the SEC v. XRP ruling by Judge Torres may take as long as two months.
- XRP could drop below the key support at $0.478 before a deeper plunge.
- A decisive close above the $0.50 psychological level will restore the bullish hope.
As the court battle between the US Securities and Exchange Commission (SEC) and Ripple, the company that issues the XRP cryptocurrency, continues, a legal expert and amicus curiae for the blockchain company, John E. Deaton, hinted that the summary judgment might not come any time soon.
The crypto lawyer explained one of the most important legal terms referring to the case, giving his views regarding the ruling deadline.
Discussing the possibility of Judge Analisa Torres making a summary judgment ruling soon, Deaton opined that the deadline for the ruling could be “out within the next hour, or it could take another 30-60 days.” The legal counsel said in a March 31 tweet that the waiting time might be two months or longer based on Torres’s earlier cases.
In early March, the judge ruled on the Daubert motions by both parties to preclude expert witnesses’ testimony. This means the crypto community could wait at least another month to discover Ripple’s fate in the SEC lawsuit.
Impact Of The Case On XRP Price
Ripple lawyers think that Judge Torres’s decision may be disastrous for the SEC’s summary judgment motion, particularly after one key witness, who was supposed to testify on why people bought the XRP token, as ‘fatal’ to the regulator.
Meanwhile, it is widely expected that the case outcome will significantly impact the price of the international remittances token. Note that XRP recently displayed the opposite response to TV personality Jim Cramer’s belief that the SEC would lose the lawsuit after all.
At the moment, the Ripple price has pulled back after attorney John Deaton put off hopes of a near ruling by the presiding judge.
Nevertheless, Deaton remains bullish on XRP and has likened the altcoin to a cockroach capable of surviving a nuclear bomb. The lawyer has also praised the Ripple price for holding above $0.510 last week, saying it has the best risk/reward ratio.
XRP is changing hands at $0.496, recording a decrease of 2% on the day after gaining 2.83% over the last seven days. These gains have added to the 33.4% ascent on its monthly chart, according to data from TradingView and CoinMarketCap.
XRP is currently testing the crucial support level at $0.478 as the uptrend witnessed during the March rally fades. This comes after the “XRP Army” anticipated a summary judgment at the end of March or early April, but it now appears they would have to wait longer.
XRP/USD Daily Chart
If the buying pressure fades away, the cross-border payments token could soon lose the immediate support at $0.478, opening the drains for further losses. The downward move could see the altcoin retrace to the $0.443 support level, last tested on March 26.
In highly desperate cases, XRP traders hedging their positions to avoid further losses could see the price revisit the $0.411 support level, where the 50-day Simple Moving Average (SMA) and the 200-day SMA appeared to converge. This would denote a 16.83% decline from the current price.
This gloomy outlook was validated by the downward movement of the Relative Strength Index (RSI). This suggested that the bears had begun taking control of the price and were determined to take it lower as profit-taking continued.
On the other hand, the appearance of a “golden cross” on the daily chart suggested that XRP’s upside was not over. The bullish cross occurred during the early Asian trading session on Tuesday when the 50-day SMA moved above the 200-day SMA. As such, increased demand from the current levels could see Ripple climb from the current price past the immediate psychological hurdle at $0.50 to confront the next barrier at $0.507. A decisive flip of this resistance into support would invalidate the bearish thesis.
In highly bullish cases, the Ripple price could tag the $0.532 resistance level and continue its March uptrend to $0.586. Such a move would constitute an 18.6% climb from the current levels.
