The U.S. Securities and Exchange Commission (SEC) has formally appealed against a 2023 ruling that found sales of Ripple’s XRP token on crypto exchanges did not break securities laws.

According to the regulator, District Court Judge Analisa Torres was “factually and legally” wrong when she concluded that offers and sales of XRP to the public via crypto trading platforms and the company’s offers of the token as employee compensation and in business deals did not constitute investment contracts.

Details of the Appeal

In the brief filed late on January 15, the SEC requested the U.S. Court of Appeals for the Second Circuit to overturn Judge Torres’ decision and order a summary judgment in its favor regarding Ripple’s offers and sales of XRP to retail investors and for those instances it was exchanged for non-cash considerations.

This long-running case goes back to 2020 when the regulator sued Ripple, claiming the crypto company had raised at least $1.3 billion from the sale of XRP, which it deemed an unregistered security. Three years later, Judge Torres ruled on the matter, concluding that while institutional sales of the token violated U.S. securities laws, programmatic ones did not due to their blind-bid nature.

While the financial watchdog filed an appeal against the verdict in October last year, this latest move marks a more formal step in the process. The agency is outlining its reasoning for challenging the decision made by the district court.

Once again, it bolstered its argument using the Howey Test, claiming that XRP buyers would have expected to profit from Ripple’s promotion of the token, making it an investment contract.

The SEC also argued that the anticipation of profit from the efforts of others is not determined by the identity of the person or entity offering an investment but by what they say and do. For that reason, those buying XRP from exchanges still expected to gain, contrary to Judge Torres’ determination.

Ripple Executives React

Shortly after the filing, Ripple’s chief attorney, Stuart Alderoty, took to social media to lambast the SEC’s move, calling it “a rehash of already failed arguments.” The lawyer also noted that Ripple will make a formal response of its own in due time. However, he expressed optimism that the incoming Trump administration will likely abandon the litigation.

“For now, know this: the SEC’s lawsuit is just noise. A new era of pro-innovation regulation is coming, and Ripple is thriving,” he remarked.

On his part, CEO Brad Garlinghouse described the filing as “insanity.” He called out the agency for doing the same thing repeatedly and expecting different results. The executive also accused Chair Gary Gensler, who is set to step down in a few days, for taking the matter personally.

TL:DR;

• Ripple’s cross-border token has stolen the show once again as its price shot up to $3.2 for the first time in over seven years.
• At the same time, analysts have turned highly bullish, with predictions of up to $10 per token during the ongoing cycle.

Recall that the asset’s price stood at a mere $2.1 at the start of the year two weeks ago. Since then, it has been on a spectacular run that even the Monday crash couldn’t contain.

The past few days alone have been nothing short of astonishing for the third-largest cryptocurrency, as it went from $2.3 on Monday to $3.2 earlier this morning. This represented a nearly 40% surge in about 72 hours and put its price at a seven-year peak.

Despite retracing to under $3.1 now, XRP is still 9% up on the day and more than 30% higher than this time last week. This impressive rally came after the US CPI data was announced yesterday, which pushed many crypto assets north. However, XRP’s case is particularly impressive.

It all started last week after reports that XRP whales had spent more than $2 billion to accumulate approximately a billion tokens within the span of just 48 hours. The positive developments have only intensified since then, including growing usage of the XRP network for massive transactions.

Even the SEC’s late appeal in the legal case between the agency and Ripple couldn’t shake XRP’s gains. At the same time, popular analyst Ali Martinez outlined a massive price target for the asset of up to $10.

After outlining the aforementioned whale accumulation, he added that the token has broken out of a bull pennant, which typically indicates the continuation of a substantial rally to the upside. He concluded that if the buying pressure continues in such a manner, it could send XRP’s price higher by more than 3x.

$XRP is going to $10! pic.twitter.com/EAIhqpj4V4

— Ali (@ali_charts) January 15, 2025

TL;DR

• XRP hit a multi-year high of $3.20 before retracing below $3.10. Despite bullish momentum, the RSI crossing above 70 signals a potential correction.
• Analysts predict XRP could reach $4-$10, with the Ripple-SEC lawsuit and upcoming SEC leadership change being critical factors for future price movements.

The Bearish Factor

Ripple’s XRP has been crypto’s rockstar lately, with its price reaching multi-year peaks. Several hours ago, the valuation skyrocketed to $3.20, representing the highest level observed since the beginning of 2018. In the following hours, XRP lost some steam and is currently trading at around $3.05 (per CoinGecko’s data).

Despite the bullish landscape and the overall expectations of a further pump, one indicator suggests an incoming correction. This is the Relative Strength Index (RSI), which measures the speed and change of price movements. 

It varies from 0 to 100, helping traders identify potential price reversals. Readings above 70 typically signal that the asset is overbought and could be due for a pullback. On the contrary, anything below 30 might be considered a buying opportunity. The RSI has been hovering above 40 since the beginning of the week but most recently crossed the bearish zone of 70.

XRP Price Predictions

As mentioned above, multiple analysts expect XRP’s value to keep climbing after exceeding the $3 level. The popular X user CRYPTOWZRD believes the asset could hit $4 in the short term, while Ali Martinez was even more optimistic, setting a target of $10. 

One major factor that could affect XRP’s future price fluctuations is the development of the lawsuit between Ripple and the US Securities and Exchange Commission (SEC).

The agency recently filed its first opening brief as part of its appeal against a court ruling concerning the XRP sold to retail investors on exchanges years ago. It also insisted (once again) that Ripple’s native token should be classified as a security.

The SEC has been quite hostile toward the company (and many other crypto businesses) over the past few years. However, the upcoming shift in its leadership may end that approach. 

The current Chairman, Gary Gensler (considered a huge enemy of the digital asset industry), will resign on January 20 and be succeeded by the pro-crypto Paul Atkins. The XRP Army expects the new leader to push the case against Ripple to a favorable resolution soon. However, considering the complexity of the entire legal process, they should have somewhat realistic hopes.