The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has been a hotly contested issue in the cryptocurrency industry since December 2020. Ripple’s Chief Legal Officer, Stuart Alderoty, has been critical of the SEC’s tactics in handling the lawsuit, accusing the regulatory body of engaging in ‘shady behavior,’ concealing information, and facing internal criticism.
In a Twitter post, Alderoty likened SEC Chair Gary Gensler to Colonel Jessup from the movie ‘A Few Good Men,’ conveying a sense of insularity and fault-denial within the regulatory body. Furthermore, he emphasized that the SEC is losing in court, receiving criticism from judges, and being rebuked by the government’s internal auditor. These allegations paint a picture of the SEC’s questionable practices and lack of transparency in its dealings with major cryptocurrency entities like Ripple.
One significant ruling in the legal proceedings has been the court’s directive for the SEC to disclose internal communications regarding Bitcoin, Ether, and XRP, shedding light on the regulatory body’s internal perspective on cryptocurrencies and their regulatory status. The SEC has also faced criticism from prominent figures in the crypto space, adding to growing skepticism about the SEC’s handling of cryptocurrency regulation.
As the legal battle unfolds, the market performance of XRP, Ripple’s native cryptocurrency, has seen fluctuating trends. After reaching a peak of $0.75, XRP underwent a downturn, nearly retracing to the $0.55 horizontal support area. This price movement followed a breakout from the $0.55 resistance, indicating market uncertainty.
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The Relative Strength Index (RSI), a key momentum indicator, presents a mixed scenario for XRP. While the weekly RSI remains bullish, daily readings hover around 50, a critical threshold that could dictate future price movements. A bounce at the $0.60 support level, coupled with the RSI maintaining above 50, could lead to a significant uptick in XRP’s price. Conversely, a fall below these levels might result in further declines, potentially testing the $0.50 support area.
Technical analysis suggests a balanced outlook for XRP, with the currency breaking out from a descending resistance trend line in late October and facing resistance at the $0.74 level. The 0.618 Fibonacci retracement level at $0.74 marks a crucial resistance level, influencing the future trajectory of XRP.
Amid the legal turbulence, Ripple’s prospects hinge on maintaining support levels and the direction of the RSI indicator. Observing the weekly and daily RSI trends coupled with critical support and resistance levels will provide insights into XRP’s future price movements.
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