Market investors are anxiously looking for any update on XRP as the U.S. Securities and Exchange Commission (SEC) is set to have a long-awaited closed-door meeting on April 3. The value of XRP in the immediate future will be based on the upcoming SEC meeting. In this meeting, the SEC may vote to dismiss its appeal regarding whether XRP is a security. Investors and analysts are anticipating any signals from the regulator that may influence the cryptocurrency’s price direction and legal status.

Market Reactions and Price Speculation

XRP has been under intense scrutiny since December 2020, when the SEC filed a complaint against Ripple Labs for selling unregistered securities.  This legal battle has raised doubts about XRP’s status and fate in the United States market.  Most people think that the upcoming SEC meeting will either help decrease or increase such concerns. Market analysts caution that strict regulations may render XRP’s price volatile and may even drive it beneath the crucial $2 support level. Should the price go below $2, any such short-term recovery attempts may falter, thus triggering panic selling.

XRP has a market capitalization of $122.3 billion. Over the last day, it has remained 40% lower than its all-time high price of $3.40, moving between $2.05 and $2.50. The growing downward trend is an indication that XRP may experience a steeper decline, with no recovery signs yet. Bearish opinion is further reaffirmed by the price action. The Relative Strength Index (RSI) reading is at 39, illustrating poor momentum south of the central 50 threshold. Josh, an analyst with Crypto World, gave an update on the price action of XRP.  In his view, XRP is witnessing a small bullish bounce.  This is following an oversold reading in the RSI (Relative Strength Index), which stated that XRP was set for a relief bounce short-term.  This bounce or sideways action is expected to last for the next day or two.

According to Dimsum Daily, on March 19, Ripple CEO Brad Garlinghouse reported that the SEC intended to withdraw its appeal against the decision regarding XRP’s Programmatic Sales. But the SEC has yet to comment on its intentions regarding its potential appeal down the road. Ripple’s Chief Legal Officer, Stuart Alderoty, posted an announcement regarding the outline of a potential settlement drawn up on Judge Torres’ Final Judgment. Under this settlement proposal, the fine would be reduced to $50 million, from the SEC’s initial request for $2 billion and the before-talked $150 million.

What to Expect from the SEC Meeting

Though the agenda of the SEC’s behind-closed-doors meeting has not yet been made public, speculations regarding its impact on XRP and the rest of the crypto market are plentiful.  The meeting may touch upon regulatory enforcement efforts, ongoing lawsuits, or the designation of digital assets as US securities law (Crypto Times).

If the SEC gives clear instructions or suggests a decision in the case of Ripple, it might provide much-needed regulatory confidence. On the other hand, the lack of transparency might delay the uncertainty further, and that puts pressure on XRP’s price. Either way, the market participants expect major volatility while waiting for the next move from the SEC.