XRP Bulls Hold $3 Line as SEC Challenges Ripple Victory

The SEC has entered a fresh phase in its pursuit against Ripple Labs, filing an appeal against a ruling from July that favored the cryptocurrency firm. This comes at a time when XRP has impressively surpassed the $3 mark, a price level not seen since 2018, indicating investor confidence remains unshaken.

In a move that underscores its continued legal confrontation, the SEC filed its opening brief with the Second Circuit Appeals Court on January 15.

The regulator aims to reverse the previous decision by Judge Analisa Torres, challenging the classification of XRP sales to retail investors. The SEC insists that these transactions should be viewed as unregistered securities offerings, referencing the Howey Test and Ripple's promotional activities as indicators of an investment contract. This lawsuit dates back to December 2020, when the SEC initially accused Ripple of using its XRP token illicitly to fundraise.

Despite the renewed legal pressure, XRP has maintained its upward trajectory, demonstrating resilience with a current trading price of $3.13, marking a 9% increase over the past day. This comes as a surprise to some market analysts who might have anticipated a decline following the SEC's filing. Instead, the digital asset has seen an influx of investor interest.

The Chaikin Money Flow (CMF) for XRP underscores this demand, recording an upward trend at 0.20, reflecting a positive capital inflow during this rally. Such signals point to strong buying momentum, suggesting the rally might sustain itself.

Further supporting this bullish sentiment is XRP's Awesome Oscillator, which now shows a green, upward-facing histogram bar at a value of 0.33. This indicator showcases the growing market momentum, hinting at continued price strength.

Should the current market dynamics persist, analysts predict XRP could edge closer to its record high of $3.28, achieved in January 2018. However, shifts in market sentiment could threaten this projection. An increase in selling pressure may see XRP lose traction and dip below $3, potentially nearing $2.60.

This update reaffirms that XRP is holding firm above $3, in spite of the SEC's ongoing challenges against Ripple.