XRP Price Bounce & Legal Clarity May Set Stage For Bigger Breakout

Ripple’s XRP has been the subject of renewed discussion in both legal and trading circles. Amid ongoing market volatility and debates over asset classifications, recent comments by Ripple-affiliated lawyer Bill Morgan have added clarity to XRP’s legal standing.

At the same time, technical indicators are flashing a potential XRP price rebound, despite a recent 18% decline over the past 20 days. These developments come as XRP trades at approximately $2.25. Some indicators are also showing early signs of bullish momentum.

Ripple Lawyer Rejects Legal Uncertainty Claims Around XRP Classification

Ripple lawyer Bill Morgan has dismissed arguments that XRP lacks legal clarity due to the absence of a formal asset classification. This debate has been ongoing, especially among Bitcoin supporters who claim that XRP’s legal status is unresolved.

Morgan countered this claim by stating that the court’s ruling in the SEC case provided adequate clarity. In his comments, Morgan said, “The idea that an asset is legally unclear just because it lacks a formal label is a logical misstep.”

He referred to Judge Analisa Torres’ ruling from 2023, where the court determined that XRP was not a security in the context of retail sales. The ruling made a distinction between institutional and public offerings, thereby helping define XRP’s legal role in the U.S. market.

Morgan added that the concept of classification itself remains loosely defined in legal terms. He emphasized that courts are not required to categorize assets but rather to interpret the law in specific contexts. This distinction, according to Morgan, is often misunderstood by critics of XRP.

Legal Clarity Around XRP May Support Price Stability and Growth

Morgan pointed out, having clarity on what an asset is not, can be just as important as knowing what it is. “If we do not know exactly what XRP is, we certainly have the legal clarity of what it is not: it is not a security,” he said.

This statement helps reinforce that the XRP price is not being held back by legal ambiguity in the U.S. retail market.

The Ripple team has also expressed support for recent efforts to introduce clearer crypto laws. Ripple Chief Legal Officer Stuart Alderoty recently welcomed the passing of the Digital Asset Market Clarity Act in the U.S.

He stated, “Clarity shouldn’t be controversial,” further backing Morgan’s remarks on the topic.

In other jurisdictions, such as Australia, digital assets like Bitcoin have been classified as “property,” showing how definitions can vary. These examples suggest that formal classification does not necessarily drive legal clarity, and that judicial decisions can be equally authoritative.

XRP Price Movement Shows Potential Rebound Despite Bearish Pressure

The XRP/USD 4-hour chart suggests that the price might start to recover after falling 18% recently. When writing, XRP price traded around $2.26, staying within the range of $2.20 to $2.27.

A bullish crossover on the MACD means that momentummay be changing. That’s because the MACD line was above the signal line, and the histogram was positive. The increase in prices showed that buyers were involved, though the current trend was still in its early stages of a change.

The RSI was at 61.67 at press time. It was above the moving average at 48.33 and still within the bullish-neutral zone. That indicated Ripple is becoming stronger, but also suggested it may be approaching the critically overbought level.

Price levels of $2.50 and $2.80 are seen as resistance, and $2.25 and $2.20 act as support.

Still, there is not much volume, but the technicals look ready for a breakout if demand increases. Either a strong surge above $2.50 or a positive retest of the $2.10 support is considered a good sign, prior to jumping into the market. Indicators generally suggest that the market might move up slowly and cautiously.