As the crypto market gears up for the traditional “Uptober” rally, XRP’s participation remains uncertain. With the threat of the SEC appealing the July 2023 ruling in favor of Ripple, crypto analyst Abiodun Oladokun has warned of a potential double-digit drop in XRP’s price.
Will XRP Rally in October?
FOX Business reporter Eleanor Terrett shared on X that a former SEC attorney informed her of the regulatory body’s plan to appeal Judge Analisa Torres’ ruling from July 2023, which found that Ripple’s programmatic XRP sales did not constitute unregistered securities offerings. In August, the SEC moved to appeal the decision, filing an Interlocutory Appeal Motion seeking the court’s approval.
Investors Betting on $1.10 for XRP in October
Judge Torres denied the SEC’s request in October 2023 and ordered the regulator to wait for the final ruling before appealing. That final decision came on August 7, 2024, with Ripple Labs receiving a $125 million fine for selling XRP without proper registration. Terrett reports that the SEC plans to challenge the ruling.
The SEC Holds All the Cards
According to Deythere, the SEC has until October 7 to file an appeal. This decision could result in XRP losing its recent gains. The token’s technical structure suggests that speculation around an SEC appeal may have prompted some investors to sell their XRP holdings, as the Balance of Power (BoP) indicator is currently negative, at -0.03. A negative BoP indicates that sellers hold more control over the market. Additionally, XRP’s Parabolic Stop and Reverse (SAR) indicator suggests downward momentum, with SAR points appearing above the price.
XRP Price Prediction: A Potential 21% Drop
If the SEC proceeds with the appeal, XRP may struggle to rally in October as anticipated. If selling pressure intensifies, XRP’s price could drop by 21% to around $0.46. However, should bulls reemerge and buying activity gain momentum, this bearish forecast could be invalidated, and XRP’s price may rise to $0.74.
