SEC vs. Ripple lawsuit about to reach verdict — XRP bulls prepared

NEW DELHI (CoinChapter.com) — Ripple’s legal battle with the US Securities and Exchange Commission might soon be concluding.

In separate motions filed on Saturday, both the SEC and Ripple Labs requested a federal judge to make an immediate ruling on the XRP lawsuit. In detail, the parties involved in a lawsuit can file for summary judgment if they believe there is enough evidence to make a ruling without proceeding to a trial.

Ripple’s top executives, Brad Garlinghouse and Chris Larsen were also named in Ripple’s motion for summary judgment. Both parties requested District Judge Analisa Torres to make a ruling based on the arguments filed in the accompanying documents.

Ripple, in its motion, argued that the SEC’s arguments have failed to prove that XRP sales were an investment contract decisively. On the other hand, the SEC remains unmoved on its stance that XRP sales violated its laws.

Stuart Alderoty, Ripple’s general counsel, shared his two cents in a Twitter post, stating that the SEC had failed “identify any contract for investment” and that the securities watchdog cannot satisfy the Howey Test.

Meanwhile, the news acted as a bullish cue for the XRP token prices, with buyers entering the market late in the day. The bulls led to XRP prices recovering most of their intraday losses, seemingly buoyed by the promise of an end to the nearly two-year-long legal battle.

XRP Recovers The Day’s Losses

XRP prices were volatile today, as the token fell to a low of $0.34 from the day’s high ($0.365) before aggressive buying helped the token reclaim some of the lost ground.

Also Read: Ripple and Trenglo partnership extends to UAE despite ongoing SEC lawsuit.

The altcoin prices had dropped by nearly 5% on Sunday after a rally that began on Sept 16 saw XRP gain nearly 15% in two days. If XRP prices continue rallying upwards, the token would need to move above immediate resistance from its 100-day exponential moving average (100-day EMA, blue wave) near $0.38.

A move above immediate resistance might help XRP break past resistance near $0.4, a level that has rebuffed the token’s price rally since Jun 10 this year. Moreover, a judgment in Ripple’s favor could likely result in prices skyrocketing.

Conversely, if the prices fall, XRP prices would likely fall to the support confluence of their 20-day EMA (red wave) and 50-day EMA (purple wave) near $0.348. Failure to hold above this key support level might result in XRP falling 9.7% from current levels to reach $0.32 before recovering.

While a judgment favoring the SEC might result in prices blowing past support levels to new lows, a favorable result might invite profit booking, curtailing XRP’s bull run.

Meanwhile, the relative strength index for the Ripple remains comfortably neutral, clocking at 53.95 on the daily charts.

At writing, XRPUSD was trading at $0.358, up 0.17% on the day.

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