After more than four years of legal proceedings, the U.S. Securities and Exchange Commission (SEC) has announced the discontinuation of its case against Ripple regarding the XRP lawsuit. In a statement shared on X, Ripple CEO Brad Garlinghouse expressed optimism, declaring, “This is it – the moment we’ve been waiting for. The SEC will drop its appeal – a resounding victory for Ripple, for crypto, every way you look at it. The future is bright. Let’s build.” This announcement has sparked waves of enthusiasm among XRP supporters and the broader cryptocurrency community.
While legal expert Jeremy Hogan noted that Ripple retains several options moving forward, the prevailing sentiment among market participants suggests that this recent development signifies a substantial victory for Ripple. Hogan outlined four possible paths that remain for Ripple:
a. Ripple continues its appeal, and we get a ruling from an appellate court on whether investment contracts require contracts, etc.
b. Ripple agrees to drop its appeal, jurisdiction returns to the trial court, and the parties attempt to amend the judgment.
c. Ripple agrees to drop its appeal, and the parties enter into an agreement between them without trying to amend the judgment.
d. Ripple simply pays the $125 million and moves on.
How High Can XRP Go?
Against this backdrop, crypto analyst Dark Defender (@DefendDark) recently shared an updated daily XRP/USD chart, which indicates that XRP has broken above a significant descending trend line following the announcement. The breakthrough, occurring near the $2.47 mark, has been highlighted as “A Clear Break-Out,” suggesting that market participants may no longer be restricted by the previous downward trend.
The chart further showcases an Elliott Wave count that aligns neatly with Fibonacci retracement and extension levels. This chart delineates a completed corrective phase and the early stages of a new impulsive wave structure, supported by the decisive breakout from a prolonged descending trendline. According to the analysis, Wave (1) initiated from a local low of $1.79 and ascended to around $2.55, marking the beginning of the first bullish impulse. This was succeeded by Wave (2), which retraced in alignment with the Fibonacci support zone.
In this retracement, the 61.80% level at $2.3073 was respected, alongside an approach toward the 70.20% level at $2.2249. These values indicated a technically sound corrective wave within the Elliott framework, providing support for buyers and averting further declines. Consequently, this signals the possible conclusion of Wave (2).
The chart then anticipates the commencement of Wave (3), which is traditionally the strongest wave in Elliott Wave theory. Fibonacci extension levels are plotted to delineate likely targets for this wave. Notably, the 161.80% extension aligns at $3.94, serving as a pivotal target zone for Wave (3). The 261.80% extension near $3.78 further reinforces this zone, presenting a potential area for bullish momentum to encounter resistance.
Interestingly, Dark Defender forecasts that XRP could surge even higher, potentially reaching the $4.50 range. Following Wave (3), a corrective Wave (4) is anticipated, likely respecting the broader uptrend and dropping into the $3.78 to $3.94 region. Subsequently, the final impulsive Wave (5) is predicted to extend upon the 361.80% Fibonacci level at $4.9274, which could mark a potential high within the current Elliott Wave cycle. The possibility of surpassing the $6 mark, where the wave structure may culminate, remains open.
As of press time, XRP traded at $2.55, reflecting a bullish outlook in light of the positive developments.
