The U.S. Securities and Exchange Commission (SEC) is preparing for a potential government shutdown in December, which could have far-reaching consequences on the ongoing legal battle between the SEC and Ripple Labs. In a recent operational status update, the SEC warned that if the federal government faces a shutdown, its operations will follow suit, shifting to a reduced capacity in line with the rest of the government.
Despite this, the SEC has made it clear that it will prioritize critical operations, including the continued functioning of essential systems like EDGAR, the electronic filing system. The agency also emphasized its commitment to market integrity and investor protection during the shutdown, ensuring these elements of its mission remain intact.
This announcement comes at a time when political tensions are high. President-elect Donald Trump recently rejected a proposed federal funding bill, making a shutdown more likely before he takes office on January 20, 2025. Should the shutdown extend into January, it could delay the SEC’s ability to meet a crucial January 15 deadline for its appeal against Ripple, a case that has been ongoing since December 2020. Legal experts speculate that a delay could bring the lawsuit to an abrupt end, potentially benefiting Ripple’s XRP token significantly.
XRP Price Predictions Amid Legal Uncertainty
The possibility of a legal resolution in favor of Ripple has sparked interest in XRP, with analysts predicting a potential price surge. On December 19, reports surfaced that XRP whales had purchased 110 million XRP, valued at around $250 million, signaling increased confidence in the cryptocurrency. Additionally, short positions amounting to $20.5 million could be liquidated if XRP rises to $2.62, further fueling speculation about an impending price rally.
Crypto analyst Dark Defender provided a technical analysis of XRP’s recent price movements, emphasizing the importance of key support and resistance levels. According to Dark Defender, XRP has recently touched the $2.72 level but has found support at $2.17. He identified $2.62 as a crucial resistance point, noting that breaking this level would signal the end of the current correction phase. Looking ahead, the analyst predicted a potential long-term target of $5.85 for XRP if the bullish momentum continues, which could be accelerated by a favorable outcome in the Ripple lawsuit.
With these developments unfolding, XRP enthusiasts are watching closely, hopeful that the resolution of the Ripple lawsuit could send the token’s price to new heights.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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