The ongoing Ripple-SEC case is turning to be a spectacle to watch, especially for crypto enthusiasts.
The SEC, as history shows, has been brutal to blockchain companies, on numerous occasions, imposing harsh judgments and even winding down companies.
SEC meets its Match
From EtherDelta, Telegram TON, and many other ICO-funded firms, the SEC has been heavy-handed but is now meeting their match in the ongoing court case.
The SEC appears to have been caught flat-footed and widely accused of being ill-prepared.
Accordingly, they have lost several bids in the last few weeks as the presiding Judge Sarah Netburn rules in favor of Ripple.
And the SEC seems to be sliding, failing on their making, especially considering their failure to make positive interpretations and ignore orders from the judge.
For instance, even after express orders by Netburn to deliver and share documents about communication with Ethereum and other blockchain projects in classification order, they haven’t.
The Memos at the center of the Ripple-SEC contestation
The crux of the matter now lies in Ripple’s legal advice when the creators of the project were contemplating to launch.
In two memos, that’s now the subject of the bitter contest between Ripple and the SEC, the firm’s executive wanted to know the circumstances under which XRP would be considered investment contracts or securities.
The SEC wants to get its hands on the documents. However, Ripple isn’t under any obligation to submit them as per the direction of the recent ruling.
Ripple Technical Analysis
The Ripple price is under pressure at the time of writing. Still, it is stable on the last day, posting gains versus BTC week-to-date.
At the same time, the coin is up five percent week-to-date versus USD as XRP/USD prices steady above the $0.80 and $0.85 central support zone.
From the daily chart, XRP prices are trending below the middle BB—technically bearish. However, prices are within the May 24 bull bar—a net positive.
Accordingly, provided prices trend above the critical support level, every low may be a loading opportunity for aggressive traders targeting $1.50 in the medium term.
A high-volume close above the middle BB, May 24 highs, and $1 confirms bulls of late May 2021, building the ground for gains towards $1.50 and $2 in the medium term.
Losses below $0.85 invalidate the uptrend. The follow-through sell-off may see XRP/USD crash towards $0.40 in bear trend continuation.
Chart Courtesy of Trading View
Disclosure: Opinions Expressed Are Not Investment Advice. Do Your Research.
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