Ripple: XRP Can’t Keep Up with Bitcoin Run

The pioneer crypto asset reached a new high on Thursday, hitting above the $111K resistance line while XRP strolled below the $2.5 resistance line

The price of cryptocurrency continues to be a hot topic, especially with the recent decision by a US judge to dismiss the SEC's request for an indicative ruling on the terms of the settlement with Ripple. The agency had asked Judge Analisa Torres to reduce the $125 million fine and to ban the sale of XRP to institutional investors. However, Judge Torres denied the request, stating that it was not filed following Rule 60.

The SEC's request came after Judge Torres ruled in July that the SEC's claims against Ripple were partially granted and partially denied. The agency had sued Ripple in 2020, alleging that the company raised $1.3 billion through an unregistered securities offering of XRP. Judge Torres agreed with the SEC that the sale of XRP to institutional investors was an unregistered securities offering but disagreed with the agency's assertion that the sale of XRP to retail investors was also an unregistered securities offering.

The recent court decision also raises another significant issue. The SEC may decide to vote on whether to dismiss the appeal, regardless of the settlement’s outcome, especially if Ripple chooses to withdraw its cross-appeal.

Moreover, the SEC is expected to make a decision on two spot ETF applications today. However, there might be further delays in the review process. Recently, the SEC postponed its review of Grayscale's XRP Trust conversion and the Franklin XRP Fund.

The fate of Bitcoin (BTC) and major altcoins

The pioneer cryptocurrency rose above the $111K resistance line on Thursday, May 22, as the GENIUS Act’s progress chipped away at the potential for Congress to pass the Bitcoin Act.

The optimists’ predictions came to pass as Senate Bill 21, also known as the Texas Strategic Bitcoin Reserve and Investment Act, was approved by Texas on Monday, May 21.

Once Governor Greg Abbott signs the bill into law, the state can establish a special treasury fund to invest in cryptocurrencies, including Bitcoin.

The news comes as the SEC requested an indicative ruling on the terms of the case’s settlement, but Judge Analisa Torres denied their request. The agency had asked Judge Torres to reduce the $125 million fine and to ban the sale of XRP to institutional investors. Due to a procedural error, Judge Torres denied the SEC’s request, stating that it was not filed following Rule 60.

The SEC's request for an indicative ruling came after Judge Torres ruled in July that the SEC's claims against Ripple were partially granted and partially denied. The agency had sued Ripple in 2020, alleging that the company raised $1.3 billion through an unregistered securities offering of XRP. Judge Torres agreed with the SEC that the sale of XRP to institutional investors was an unregistered securities offering but disagreed with the agency's assertion that the sale of XRP to retail investors was also an unserurities offering.

The recent court decision also raises another significant issue. The SEC may decide to vote on whether to dismiss the appeal, regardless of the settlement’s outcome, especially if Ripple chooses to withdraw its cross-appeal.

Moreover, the SEC is expected to make a decision on two spot ETF applications today. However, there might be further delays in the review process. Recently, the SEC postponed its review of Grayscale's XRP Trust conversion and the Franklin XRP Fund.

The weekly Golden Cross of XRP/BTC

The occurrence of the weekly Golden Cross usually precedes XRP outperforming BTC. This crossover suggests that the trend may be shifting back in XRP’s favor, potentially sparking a surge in investor interest.

Activity within the XRP Ledger ecosystem is spiking at this signal’s occurrence. Messari reports this quarter saw a 142% increase in active addresses and a 304% surge in RLUSD’s market capitalization.

With improved fundamentals and heightened institutional recognition of the network, the Golden Cross is not isolated in this context; rather, it is part of a larger dynamic.