Fundamental analysis: cryptocurrency exchanges discussed XRP’s regulatory status before listings, says Ripple
Ripple said that cryptocurrency exchanges continue to discuss XRP’s regulatory status with the United States Securities and Exchange Commission (SEC). Ripple continues to claim that XRP is a cryptocurrency and noted this in a response to SEC complaints that Ripple violated federal securities rules and denied the agency’s allegations.
The new answer was not much different from the first one that Ripple presented at the end of January. In its amended lawsuit, Ripple continued to deny the SEC’s claims that XRP is a security and said it had not violated federal laws by selling the asset in the past 8 years.
The San Francisco-based startup also addressed the SEC’s claims that cryptocurrency exchanges held discussions about whether to list XRP with the agency. Such a company, referred to as “Platform A”, allegedly assessed “the regulatory status of XRP in light of the SEC’s previous guidelines and actions”.
“Platform A met with the SEC team in the Corporate Finance Division and the Trading and Markets Division, including at least one senior member of the SEC team who previously met with Ripple on several occasions during investigative-related meetings in 2018 , on the legal status of XRP and sought guidance on whether the SEC team considered XRP a title, ”said Ripple in the response.
After the SEC filed a lawsuit against Ripple, several cryptocurrency exchanges suspended XRP trading, including Coinbase.
Technical analysis: Consolidation taking place
The price of Ripple’s token rose 11.6% last week to return close to $ 0.50 before a new trading week. With that, buyers were able to erase the losses of more than 23% recorded two weeks ago.
Daily XRP Chart (TradingView)
The price of XRP is being traded in a symmetrical triangle with resistance and support for this chart pattern reaching $ 0.56 and $ 0.35, respectively, with the latter also driven by the DMA-200. The price action is likely to trade between these two levels, with any drop to $ 0.35 seen as a chance to buy XRP.