XRP price plummets as SEC cancels key settlement meeting

XRP, often a focal point in crypto legal disputes, has dipped today amid speculation that the U.S. Securities and Exchange Commission (SEC) cancelled a much-anticipated settlement with Ripple, a blockchain payments startup.

SEC cancels key Ripple conference

XRP recently outperformed the broader crypto market, reaching a three-month high.

However，the U.S. Securities and Exchange Commission has canceled a closed-door meeting scheduled for July 18 that was expected to discuss the ongoing Ripple lawsuit.

The SEC announced the cancellation on July 17 without providing a reason.

However, market participants speculate that this could be related to the timely approval process for the Ethereum ETF, which is scheduled to begin trading on July 23.

Ripple Background of the Lawsuit

The SEC sued Ripple in late 2020, accusing it of raising $1.3 billion by selling XRP without registering it as a security.

This lawsuit is significant due to its potential impact on the SEC's jurisdiction over cryptocurrencies.

Last July, a US district judge ruled that XRP sales to retail investors on exchanges did not constitute investment contracts, marking a significant setback for the SEC.

Problems ripple currently faces

The primary issue now is determining the penalties for unregistered sales to institutional investors.

The SEC seeks a multi-million-dollar fine against Ripple, but the company argues for a civil penalty of no more than $10 million.

Ripple settlement meeting canceled causes price to fall

Pro-XRP lawyer Fred Rispoli previously commented on the possibility of a settlement before the court's ruling, noting it is unlikely, although negotiations on unresolved arguments could occur.

Judge Analisa Torres is expected to decide on the remedies soon, with Rispoli predicting a decision by the end of the month.

XRP price change chart Source: coinmarketcap

The cancellation news led to a significant market reaction, with XRP prices falling to a 24-hour low of $0.57.

Trading volume increased by 20% in the last 24 hours, showing trader interest despite the price drop.

XRP future trend

XRP trend chart Source: tradingview

XRP is eyeing a price of at least $1 after breaking above a trendline pattern. Total futures open interest has surged to $1.37 billion in the last 24 hours.

However, some profit-taking occurred in futures trading, as expected. Chart patterns and indicators such as RSI and descending channel formation suggest a period of consolidation in the coming days.