Ripple CEO files motion seeking documents from Binance

Photo by BeatingBetting on Creative Commons
Photo by BeatingBetting on Creative Commons

Key Takeaways:

  • Ripple CEO Bradley Garlinghouse’s legal team requested documents from Binance Holdings Limited.
  • The motion seeks to obtain evidence from Binance concerning his XRP transactions.
  • XRP prices are moving horizontally after its ten-day bull run that began on July 21.

NEW DELHI (CoinChapter.com) — Ripple CEO Bradley Garlinghouse has requested documents from Cayman Islands-based Binance Holdings Limited, a subsidiary of the world’s largest crypto exchange Binance.

Mr. Bradley’s legal team filed ‘Motion to Obtain International Discovery’ as they believe Binance has unique documents relevant to the case. Specifically, the motion seeks to obtain evidence to target the “jurisdiction over the sales” aspect of the lawsuit filed by the U.S Securities and Exchange Commission.

Meanwhile, XRP, Ripple Labs’ native cryptocurrency, seems to have exhausted its 10-Day bull run, as its prices are now moving horizontally on the daily chart.

What The Latest Motion Is About

The latest motion filed in the Ripple v/s SEC lawsuit has involved Binance in the legal battle.

As per the documents filed with the U.S District Court in New York, the Ripple CEO asked the court to issue a letter of request to the Central Authority of Cayman Islands. Additionally, the motion cited U.S laws and the Hague Convention in its appeal to compel evidence from Binance.

The crux of the motion targets SEC’s allegation that Mr. Bradley sold more than 357 million XRP tokens on trading platforms “all over the world.” As such, the defense believes Binance may possess documents about the alleged XRP transactions.

Ripple also cited Section Five of the Securities Act (1933) to state that illegal XRP sale is defined by geography and does not cover international sales. Moreover, the motion highlights that SEC’s failure to allege “domestic offers and sales” should be grounds for dismissing the lawsuit against the Ripple top executive.

Also Read: Expect no settlement in the Ripple vs. SEC case, legal analyst says.

While Ripple’s early defense was based on the premise that XRP is similar to Bitcoin and Ether (deemed commodities by SEC), the firm is now challenging the SEC on multiple grounds, including the fair notice issue and now SEC jurisdiction over token sales outside the US.

In June, CEO  Garlinghouse and Co-founder Chris Larsen (individual defendants) filed a similar motion to obtain documents from 14 crypto exchanges, including Bithumb, Bitstamp, and others. In May, Judge Sarah Netburn ruled that the US regulator could continue communicating with its foreign counterparts to receive documents from Ripple’s overseas partners.

The pre-trial discovery phase will continue till October 15.

XRP Charting Candles Horizontally

XRP prices seem to have depleted their bullish tailwinds. The Ripple crypto’s prices are declining, having failed to breach resistance at $0.782.

XRP fails to break above resistance at 200-Day MA. Source: XRPUSD at Tradingview.com
XRP fails to break above resistance at 200-Day MA. Source: XRPUSD at Tradingview.com

The critical resistance coincides with XRP’s 200-Day (Green) Moving Average trendline. Since the XRP prices are moving below the 200-Day MA, the altcoin is bearish in the long-term range.

Additionally, the 50-Day (Red) MA trendline has formed a support confluence with XRP’s 20-Day (Violet) Exponential MA at $0.664. Bulls are hoping for prices to consolidate at the support, as the next support at $0.517 will mean a 22% decline from the $0.664 level.

Also Read: Eleven cryptocurrency exchanges in South Korea to shut down amid regulatory pressure.

As XRP prices are above the 50-Day MA line, the digital asset is still bullish in the short term. Moreover, if prices rally upwards and breach the resistance at 200-Day MA, the next resistance is at $0.89. Though for now, the $0.782 resistance level should cap any upside movements.

Momentum oscillators for XRP on the daily chart. Source:   XRPUSD at Tradingview.com
Momentum oscillators for XRP on the daily chart. Source: XRPUSD at Tradingview.com

The price momentum indicator RSI (Relative Strength Index) is neutral at 56.66 for XRP. Though the RSI trendline is moving downwards, it is still far above the oversold region.

However, XRP’s MACD might be worrying for bulls. Bars on the MACD histogram, which plots the difference between the MACD line (difference of 12-Day and 26-Day EMA) and the MACD signal line (9-Day EMA of MACD), are declining. Thus, it seems the MACD signal line may soon go above the MACD line, indicating a bearish crossover.

At the time of writing, XRP was trading at $0.7132, down 3.36% on the day.

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