The weekend started out very bullish for Ripple’s XRP† On Saturday, XRP was up 7.11% to end the day at $0.8136.
SEC vs. Ripple progress increasingly positive for XRP
The news updates in the lawsuit provide the necessary support for XRP. On Wednesday, updates on the lawsuit were positive for XRP. The crypto markets reacted positively to the news that Judge Analisa Torres had granted a number of motions in favor of Ripple. Court documents show which Ripple’s motions were granted and rejected. As a result, XRP reached its current year-high before starting to decline slightly again.
Ripple served late last week filed a motion to force the SEC to share key notes. These were notes from a November 2018 meeting between former SEC acting chairman Elad Roisman and Ripple’s Brad Garlinghouse. The news sparked support for XRP on Saturday. The motion suggests that disclosure of the notes could bolster Ripple’s position.
Other lawsuits
Most attention is focused on the SEC versus Ripple case. In the meantime, however, a number of charges have been filed against the SEC.
Late last year, Empower Oversight filed a lawsuit against the SEC. Empower Oversight alleged that former SEC officials were biased against Ripple Lab and XRP in favor of Ethereum. To date, SEC Chairman Gensler continues to dodge questions about whether Ethereum is a security.
Earlier this month, the SEC took another blow. Lawyers demanded an investigation into the SEC’s actions against Ripple Labs. The petition claimed the following:
“The SEC’s enforcement actions involve the appearance of improper ties and conflicts of interest between officials regarding cryptocurrencies. This needs to be investigated.”
Importantly, the petition also points out that attorney John Deaton has “collected evidence that SEC officials may have colluded with outside parties to regulate cryptocurrencies in line with their personal financial interests.”
Both actions against the SEC focus on the conflict of interest issue that remains a key part of the Ripple case. Following the motions early last week, the SEC has until Feb. 17 to release sealed documents. These may shed more light on how the SEC viewed XRP in 2012. If the documents show that the SEC did not consider XRP a security, that could prove decisive.
Price promotion XRP
Right now, XRP is up 0.10% to $0.8162. It should avoid the USD 0.8045 to support a run at the first major resistance level at USD 0.8611. XRP is likely to face a lot of resistance at Saturday’s high of $0.8520. In the event of another breakout, XRP could test resistance at USD 0.90. The second major resistance level is at USD 0.9087.
A drop below USD 0.8045 would bring the first major support level at USD 0.7569 into play.
Looking at the EMAs and 4-hour candlesticks in the chart below, the 50-day EMA continues to move away from the 100-day EMA and 200-day EMAs after Friday’s bullish cross. For XRP, it is important to avoid a fall through the 100-day EMA, currently at USD 0.74.
In the near term, a move back to the $1.00 levels could bring in the November high of $1,348. The price action will depend on news updates from SEC and Ripple.
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