The Ripple price is struggling as the overall sentiment in the financial market cools. The XRP is trading at $1.1280, which was slightly below last week’s high of $1.3410. The coin has a market capitalization of more than $52 billion and is the 6th cryptocurrency in the world after Bitcoin, Ethereum, Cardano, Binance Coin, and Tether.
Ripple vs SEC case going on
The Securities and Exchange Commission (SEC) launched a major lawsuit against Ripple in 2020. Since then, the case has been dragging in court, with the two sides battling over key documents. A few months ago, the SEC lost when the judge overseeing the case ruled that it did not have enough authority to request bank details from key Ripple executives.
The SEC then won a three-month injunction to carry out more investigation. Close watchers and legal scholars argued that such a move was good for Ripple. That’s primarily because it signaled that the SEC brought a weak case to the court.
Therefore, this will be an important week for the Ripple price because the three-month fact-finding mission will end on Tuesday. The two parties will meet in court to deliberate on privilege dispute that has been going on for a while. On this, the SEC has refused to hand over documents to Ripple, saying thar they were protected by the deliberative process privilege.
The core of the issue is what Ripple is. Ripple Labs is requesting documents to prove that it is like ETH. In 2016, the SEC said that ETH was not a security. Therefore, there is a possibility that the XRP price will show some volatility this week as the court proceedings go on.
Ripple price technical forecast
The daily chart shows that the XRP price has been in a consolidation phase in the past few days. The coin is hovering between the 50% and 38.2% Fibonacci retracement level. It has also formed a rounded bottom and a bullish flag pattern. Also, it has formed a small inverted head and shoulders pattern.
Therefore, the coin will likely bounce back higher, with the next key level to watch being at the 23.6% retracement point at 1.5360. This price is above the current level by about 37%. On the flip side, a drop below $1.00 will invalidate the bullish view.