XRP Price Poised for Surge Following SEC vs. Coinbase Settlement

XRP’s price could see a surge following a significant development in the ongoing legal battle between Coinbase and the SEC. Currently trading at $2.67, XRP has consolidated over the past few days, roughly 50% above its lowest price this month.

A potential catalyst for XRP’s bullish breakout lies in the announcement by Coinbase CEO Brian Armstrong regarding the resolution of its lawsuit with the SEC. Coinbase has reached a deal with SEC staff to dismiss the litigation against the company. If approved by the commission, this would lead to the dismissal of charges against Coinbase, a move that could positively affect Ripple Labs and XRP’s price.

The SEC accused Coinbase of offering unregistered securities, operating as an unregistered broker-dealer, and providing staking solutions—regulations it argues should fall under its purview. However, the dismissal of the Coinbase lawsuit may signal that the SEC could also drop its case against Ripple, especially with increasing signs that the agency may adopt a more crypto-friendly stance under potential future leadership changes.

Ripple and the SEC have been in a legal dispute since 2020, with the SEC accusing Ripple Labs of selling unregistered securities. However, in the case against Ripple, Judge Analisa Torres ruled that XRP was not a security when sold to exchanges, but Ripple violated securities laws in institutional sales. The SEC’s demand for a $2 billion fine was reduced to $125 million.

With both parties appealing the decision, analysts believe the SEC may withdraw its appeal following the potential appointment of Paul Atkins, a crypto-friendly nominee, as the new SEC chair. If this scenario unfolds, it could set the stage for a Ripple victory and a positive price movement for XRP.

XRP’s price has lacked direction over the last two months but has remained above the crucial support level of $1.9855, marking the upper boundary of a bullish cup-and-handle pattern. Additionally, XRP remains above its 50-week moving average, indicating potential for a recovery.

If XRP breaks past the $3.40 level, which is the highest swing from November, it could set its sights on higher targets, potentially reaching $5.