XRP price could sweep support at $0.50 as expert argues SEC is less likely to settle lawsuit against Ripple

• XRP price dropped to $0.53, inching closer to psychologically important support at $0.50. 
• Legal expert argues that SEC is unlikely to settle its lawsuit against Ripple as Kraken uses Judge Torres’ ruling in its motion. 
• Attorney Bill Morgan says that the SEC will likely be strongly motivated to appeal Judge Torres’ ruling on XRP secondary sales. 

XRP price decline to the psychologically important level of $0.50 becomes likely as the altcoin drops to $0.53 on Monday. XRP holders are anticipating the Securities and Exchange Commission’s (SEC) next move. Attorney Bill Morgan states that the regulator will likely be strongly motivated to appeal Judge Analisa Torres’ July ruling in the SEC v. Ripple lawsuit. 

Also read: XRP price plunges as Kraken cites SEC v. Ripple lawsuit in its legal battle against the regulator

Daily Digest Market Movers: SEC unlikely to settle its lawsuit against Ripple, legal expert predicts appeal

• The SEC v. Ripple lawsuit has taken center stage in the developments that influence XRP price. 
• While XRP holders expect a settlement in the lawsuit, legal expert Bill Morgan says that the regulator is likely to appeal Judge Torres’ ruling. 
• One of the main reasons is Kraken’s citation of Judge Torres’ ruling on XRP “not an investment contract” in its motion against the SEC. 
• In its motion, Kraken cites the summary judgment from the SEC v. Ripple lawsuit and alleges the lack of an issuer and buyer connection. The exchange states that the lack of the connection is one of the grounds of no profit expectation of users from Ripple’s efforts, just as Judge Torres found in the SEC v. Ripple lawsuit. 
• The exchange is extending this to 11 issuers of tokens in their case where the regulator alleges the assets are securities. 
• Attorney Morgan believes this is likely to motivate the SEC to appeal Judge Torres’ ruling and this could have a direct impact on the status of XRP as “a non-security.”

• The SEC v. Ripple settlement is therefore unlikely. 

Technical Analysis: XRP price could sweep support at $0.50

XRP price is currently in a downward trend and the altcoin could hit support at $0.50, before beginning a recovery. Early on Monday, XRP price is $0.53. The altcoin is likely to nosedive to support, as seen in the price chart below.

The $0.50 level has acted as a psychologically important level for several months. The red bars on the Awesome Oscillator (AO) signal that a decline in XRP price is likely. The downward trend is likely in place. 

The green bars on the Moving Average Convergence/ Divergence (MACD) indicator signal there is positive momentum and XRP price could see a recovery soon. 

XRP/USDT 1-day chart 

If XRP price climbs to $0.5446 and sees a daily candlestick close above the 38.2% Fibonacci retracement level of its decline from the 2024 high, the bearish thesis could be invalidated and the altcoin could rally towards the 78.6% Fibonacci retracement at $0.6073.

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