SEC’s Motion Against Ripple Could Push XRP Price Lower

• XRP price has been tied to the ongoing Ripple case with SEC
• The latest development in the case involved the SEC filing a motion to restrict the Hinman documents
• If the SEC’s wish is granted, that could be a blow to Ripple, potentially pushing the token’s price lower

The ongoing legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs Inc. has been a major price driver for the XRP token. Despite a short recovery, XRP has been unable to break above the crucial $0.40 resistance, remaining trapped in the current range.

The saga between Ripple and the SEC began in December 2020 when the SEC filed a lawsuit against Ripple, alleging the company had sold $1.3 billion worth of unregistered securities in the form of XRP tokens. Since then, investors have adopted a wait-and-see attitude as the case drags on, with the latest development involving the SEC filing a motion to restrict the Hinman documents from the public.

The documents at the center of the debate are said to contain sensitive information and, if the SEC’s wish is granted, that could be a major blow to Ripple. If the SEC succeeds in blocking the documents, it would increase the chances of the agency successfully prosecuting the case and push XRP’s price lower. Conversely, if Ripple is able to make the documents public, it could increase speculation that the SEC is losing ground and boost XRP’s price.

At the moment, XRP is trading at $0.34 and, while it has managed to make a slight recovery, it remains trapped between $0.40 and $0.30. For XRP to see further upside, it must break above the $0.40 resistance. Conversely, if the token fails to break above the resistance, it could fall back to the $0.30 support level.

Given the uncertainty surrounding the SEC case and its potential impact on XRP’s price, investors will be watching the case closely to determine their next move. For now, XRP remains stuck in a tight range and traders are likely to remain cautious until the SEC’s case is resolved.