XRP Price Waits for SEC Closed-Door Meeting Outcome, Trading Tightly in a Range

XRP has been trading in a tight range as investors wait for potential regulatory developments. The token currently sits near $2.34, close to its 50-day moving average.

Investors are awaiting potential regulatory developments that could push the U.S. Securities and Exchange Commission (SEC) and Ripple closer to settling their long-standing lawsuit. This anticipation has kept price action in a tight pocket.

At the time of writing on Wednesday, XRP is trading at $2.34. This is a 0.17% uptick in 24-hour trading volume and places the token nearly at its 50-day moving average.

Trading Activity Picks Up Ahed of SEC Meeting

The crypto market is seeing increased activity across derivatives markets. As per Coin derivatives exchange.

Volume in the last 24 hours, derivatives trading volume surged by 25.82% to reach $3.14 billion.

Further indicating heightened trader interest and activity, new data from Deribit also shows a 2.25% rise in open interest to $4.76 billion.

In the realm of spot trading, the 24-hour volume of XRP also saw a significant increase of 40%. This brings the total spot trading volume to $1.86 billion.

Moreover, the crypto market is showcasing increased trading activity in derivatives markets.

Volume in the last 24 hours, derivatives trading volume surged by 25.82% to reach $3.14 billion.

Further indicating heightened trader interest and activity, new data from Deribit also shows a 2.25% rise in open interest to $4.76 billion.

In the realm of spot trading, the 24-hour volume of XRP also saw a significant increase of 40%. This brings the total spot trading volume to $1.86 billion.

This heightened trading activity could be attributed to the anticipation surrounding the upcoming SEC closed-door meeting on Thursday, May 29.

This meeting could present an opportunity for the agency to restart settlement discussions with Ripple.

Earlier this month, tensions flared up after Judge Analisa Torres made a key ruling. She rejected the SEC’s attempt to modify her final decision on May 15.

The SEC had tried to lift XRP’s institutional sales ban and reduce Ripple’s $125 million penalty. After this rejection, XRP’s price fell from $2.65 to $2.26.

Legal experts believe the upcoming SEC meeting could be crucial for reaching a resolution.

Pro-XRP attorney John Deaton suggests that the SEC would need to acknowledge XRP as a commodity for progress to occur in the case.

If no settlement is reached, the court has several options. It could push the SEC to resume its appeal or grant more time if both parties demonstrate good faith efforts.

Alternatively, the appeals court could choose to dismiss the SEC’s case on procedural grounds. However, legal analysts deem this outcome as less likely.

What Is the Latest Development in the SEC Lawsuit Against Ripple?

Recently, there has been a flurry of activity in the case. After Judge Analisa Torres’s May 15 ruling, the SEC made an attempt to modify the decision.

Specifically, the agency aimed to remove the part of the ruling that would ban the SEC from selling the nearly 39 billion XRP tokens that were sold in a private placement.

Additionally, the SEC sought to reduce the $125 million civil penalty imposed on Ripple for registering its efforts to sell XRP in 2018.

However, Judge Analisa Torres shot down the SEC’s request. This development has implications for both parties involved in the case.

If the SEC decides to pursue an appeal against Judge Analisa Torres’s May 15 ruling, it would need to apply for a stay of the lower court’s judgment.

This would effectively pause the ruling’s execution while the appeal process proceeds.

Moreover, if the SEC intends to pursue an appeal, it would need to do so within sixty days of the May 15 ruling. This time frame is granted by the Federal Rules of Appellate Procedure.

On the other hand, if the SEC is planning to restart settlement discussions with Ripple, it would need to apply for a stay of the lower court’s judgment.

This is because the appeals court is more likely to grant a stay if there are ongoing settlement discussions between the parties.

Technical Analysis Shows Mixed Signals

Turning to technical analysis, XRP’s price action shows some interesting trends.

The relative strength index (RSI) is currently at 51, which indicates neutral momentum in the token’s price movements.

Stochastic oscillator is showing some potential for short-term upside as it shows a possible buy signal from oversold levels.

Moving average convergence divergence (MACD) is still slightly bearish, which might add some uncertainty about the token’s next direction.

Finally, Bollinger Bands are getting narrower around the current price level. This pattern often suggests that a larger price move could be approaching.