The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) is picking up steam again, and now things could move really fast. Several attorneys at once predict that summary judgment could appear at any time, within the next few days. As Bitcoinist reported, the judge in charge ruled on the “Daubert” motions yesterday.
One of the attorneys is John E. Deaton, who is representing the XRP community as amicus in the case. When asked if the publication of the judge’s decision on the Daubert motions gives any indication of the timing of the summary judgment decision, Deaton said that he believes the decision is imminent.
The attorney stated that the judge could release her decision as early as tonight or in a couple of weeks:
I seriously doubt that we see a significant delay from here. Could be tonight or in a couple of weeks.
The theory that Judge Analisa Torres will decide all the motions together, or within a very short time, stems from defense attorney and former federal prosecutor James K. Filan’s examination of Torres’ ruling history a few months ago. Filan noted that Torres likes to make her decisions in one go.
In that vein, Fred Rispoli, senior managing partner at Hodl Law, also wrote that he expects summary judgment soon: “This is not the SJ ruling, but this means the SJ ruling is very, very close.”
However, Rispoli also wrote that after partially reviewing the Daubert motions ruling, he believes neither the SEC nor Ripple will get a full summary judgment victory and parts of the case will go to trial. “At the same time, I think I’ll be correct in my prediction on secondary sales of XRP,” Rispoli commented.
What Could A Summary Judgement Mean For The XRP Price?
If Ripple succeeds in winning the lawsuit against SEC, a massive price rally is very likely in store, as also shown by the recent partial success of LBRY. Unlike in December 2020, when the lawsuit was filed by the SEC, there could be a reverse effect.
Within a week, the XRP price crashed by a staggering -72%. The price plummeted from $0.60 to $0.17. Compared to Bitcoin and Ethereum, XRP still exhibits a huge undervaluation since this event.
XRP bulls may want to make up for this deficit, driven by several factors, including the re-listing of XRP on US exchanges. How high the price could rise is difficult to predict, but an analysis using Fibonacci retracement levels can provide some clues.
The Fibonacci retracement is a method of finding potential resistance and support zones. Traditionally, the most common retracement levels are 38.2%, 50% and 61.8%. These levels are noted by most analysts because they represent potential reversal points for the markets.
First, however, XRP is likely to find a first hurdle at the price of $0.68 (23.6%). If this mark is crushed, the retracement level at $0.93 (38.2%) could become the key hurdle to break through the $1 mark.
A rise to $0.93 would already mean a price rally of 150% from the current price. The LBC token has risen 154% after LBRY’s partial victory in late January – when the SEC admitted that LBC token sales on the secondary market are not securities. Hence, a similar scenario could be on the table, even if the XRP market is much more liquid.
If, contrary to expectations, XRP is also able to break the 38.2% Fibonacci level, resistance at $1.13 (50%) would be the main target to climb above $1.
However, as Rispoli pointed out, the judge could hand out partial victories, so it will be a matter of paying attention to the nuances of a soon to come ruling.