The seventh largest cryptocurrency has experienced a dramatic decline in recent months, after U.S. Securities and Exchange filed a lawsuit against its parent company, Ripple Labs, for its alleged role in the sale of illegal securities.
The legal action has raised fears that XRP, which acts as a settlement token on top of the Ripple blockchain, may actually be a security, prompting many U.S. exchanges, including OKCoin and Coinbase, to withdraw the token from their trading platforms until new notice. The XRP / USD exchange rate fell more than 33 percent in response.
However, a hearing last Friday raised hopes that cryptocurrency exchanges could safely resume XRP trading. Ripple’s attorney Jeremy Hogan revealed that Judge Sarah Netburn asked the SEC attorney whether the people who sold XRP consequently became involved in the sale of illegal securities. However, the lawyer replied that only Ripple and his high-profile affiliates could face the scrutiny.
Mr. Hogan says:
Now, why is this so important? This means that the exchanges that removed XRP two months ago were not and would not be violating securities laws if they re-listed XRP for sale and started selling it again.
The XRP rose by 10 percent on Monday, registering an intraday high of $ 0.568, before correcting the low during the European trading session based on the sense of short-term profit taking. However, the token managed to jump above a resistance crucial part of the medium-term downward trend line , raising hopes that it would undergo a bullish upward movement.
Technically, the XRP / USD exchange rate fluctuated within a range of the Symmetric Triangle before moving up on the four-hour chart. The overloaded consolidation period saw traders defending the pair’s bullish trend repeatedly, while facing equally intense downward pressure, while trying to break above the triangle range.
The SEC news favored the upward bias on Monday. Therefore, the prospect of XRP has risen as much as the upward trend that appeared before the Triangle pattern. This raises the cryptocurrency to $ 1, based on the classic definitions of escape from the Triangle.
It’s almost time for XRP, ”observed an analyst with a pseudonym. “Goal: $ 1.4.
Negative XRP risks remain
The discharge signal from Ripple’s lawyer does not bode well, unless cryptocurrency exchanges confirm XRP’s resignation. So far, the lawsuits have said nothing concrete about the legal status of the cryptocurrency. XRP is growing in the hope that there will be new listings, not the real listings.
Therefore, XRP is still likely to face short-term downward pressure amid uncertainty. Traders can decide to guarantee their profits while waiting for more leads from the SEC vs. legal battle Ripple ongoing .