83 Interactions, 2 Today
The judge in the current SEC vs. Ripple case has ruled in favour of the latter’s request for “fair use” access to internal papers from the US regulator.
On September 2, the price of XRP nudged higher as traders viewed Ripple Labs gaining an advantage over the US Securities and Exchange Commission in a protracted court dispute.
The XRP/USD exchange rate jumped 4.74 percent to $1.296 for the first time since August 23. The pair’s climb coincided with an increase in trading activity on the four-hour chart, indicating that traders intend to support the upward trend in the coming days.
This week, XRP has surged higher, mirroring a similar positive trend in other prominent digital currencies. According to CrediBULL Crypto, an independent market analyst, the Ripple blockchain token might reach $1.50 to $1.60 in the near future, citing impulse buying at the bottoms of practically every major cryptocurrency, including Bitcoin (BTC).
$XRP going for a break of $1.25. We clear this with conviction and we are headed to $1.50-$1.60. Talked about this in my last YouTube video. If you haven’t seen it yet, you should probably check it out before this baby heads to the moon 🚀
— CrediBULL Crypto (@CredibleCrypto) September 2, 2021
SEC vs. Ripple
The latest bout of XRP buying appears to be motivated by expectations that it will be classified as a utility token after the conclusion of the ongoing SEC vs. Ripple courtroom dispute. The US regulator accused Ripple Labs and its top executives of marketing $1.3 billion in XRP as “illegal securities” in a case filed in December 2020.
Months later, the case has progressed to the point where Ripple and the SEC both want to examine each other’s internal conversations. The SEC has categorised the assets of the top blockchains, Bitcoin and Ethereum, as utility tokens in internal meetings, putting XRP in the same category, according to Ripple.
Magistrate Judge Sarah Netburn of the U.S. District Court for the Southern District of New York held an online hearing regarding Ripple’s request on Aug. 31. She ended up siding with the defendant’s request to “fair use” right of access, stating that she would conduct a personal on-camera review of the documents.
The teleconference attracted attendees from the cryptocurrency community, with many predicting that Ripple will likely win the SEC lawsuit.
The judge ended the call and it looks very bad for the SEC! #XRP THE STANDARD🚀
— JackTheRippler🤫🐻🏦 (@RippleXrpie) August 31, 2021
CrediBULL Crypto also tweeted:
I am no lawyer but I simply can’t imagine this case going to trial UNLESS Ripple wants to take it there. The odds seem stacked against the SEC at this time and a loss at trial would set precedents that could hinder future enforcement actions by the SEC against smaller fish. $XRP https://t.co/KLAHMRwxRE
— CrediBULL Crypto (@CredibleCrypto) September 1, 2021
Additionally, Ripple’s CEO, Brad Garlinghouse — also a defendant in the case — said:
“The SEC’s lawsuit isn’t just about Ripple, it’s about what impossible standards of fair notice and due process through regulation by enforcement can do to crypto innovation. Anyone could be next without warning.”
Following the SEC’s lawsuit filed in December 2020, XRP suffered significant reputational damage. As a result, it was delisted from a number of major cryptocurrency exchanges, including Coinbase and Bitstamp. Fear, uncertainty, and doubt pushed XRP/USD prices down by more than 66 percent in the same month.
It appears that Ripple’s small wins against the SEC have boosted XRP’s bullish outlook in the near term.
XRP’s latest gains helped its prices cross above a critical descending trendline resistance that constitutes a bull flag.
Bull flags represent consolidation patterns that follow a strong price move to the upside (known as a “flagpole”). Investopedia reports that such structures are trend continuation indicators, meaning that flags end up sending the prices in the direction of their previous trend.
When a result, XRP/USD is poised for a bull run, particularly as it seeks to break out of its bull flag formation to the upside. If the rally continues, the pair’s next profit objective might be as high as the flagpole height (around $0.28).
The bullish aim for XRP/USD is now $1.51.