In August a judge ordered Ripple to pay just over $125 million in civil penalties, officially ending the SEC’s lawsuit & concluding that XRP is not a security. The decision was a win for Ripple and all of the crypto industry, and also gave a slight pump to XRP’s price. However, the possibility remains for the SEC to appeal the Ripple case. If the regulator does file an appeal, how could that affect the asset’s price, if they do decide to at all?
In a video posted on YouTube, crypto analyst Mattew Perry discusses the possibility of the SEC appealing the case against Ripple. The appeals’ deadline is approaching on October 6, and an appeal could change XRP’s current trajectory. Indeed, some investors are worried that if anything changes the court’s decision, XRP’s price might see a dip.
Following the conclusion of the Ripple v SEC lawsuit, XRP rose 16% within the day. The asset currently sits under $0.60. Currently, there are speculations that XRP could pump to as high as $1 by the end of 2024. However, an SEC appeal with certainly change that. Investors may see a potential appeal as something to hang doubts on regarding Ripple and its native token. The appeal would also slow down Ripple’s growth, as it would need to shift its focus towards winning the appeal as well if granted.
Ripple Doesn’t Plan To Appeal, But Will The SEC?
Ripple publicly stated they did not plan to appeal the fine they were forced to pay. However, the SEC has yet to decide on making their appeal. Since Ripple decided to not appeal, XRP has floated around the same price mark, not surging or sinking considerably. Mattew Perry also highlighted that XRP’s daily trading volume hovers around $1 billion. The asset currently has a market cap-to-volume ratio of approximately 3%. This volume would likely sink if the regulator were to proceed with an appeal, due to investors becoming uncertain about the asset’s future.
Ultimately, the SEC’s decision to appeal or not is a difficult one to predict. The regulator is under intense scrutiny from the US House Committee for its iron fist on the crypto industry. The digital asset industry is growing in popularity. Thus, the SEC could pursue an appeal in the Ripple case to slow the momentum. However, it is also likely that the SEC will not file an appeal in time and the case would finally be resolved.
If the SEC doesn’t appeal by October 6, XRP could witness a further pump in price. The asset has failed to breach $0.70 since the case was won in August. However, if the case finally ends with no appeal, XRP may return to its path toward $1 by the end of 2024. The path is steep, but multiple crypto assets have surged in September. If a bullish crypto market continues into October beyond the appeal deadline, XRP may ride that wave.