SEC compels Ripple to produce relevant video/audio recordings; XRP mum

"เหรียญคริปโตเคอเรนซี่ Ripple XRP" by fxtmthimages (licensed under CC BY 2.0)
“เหรียญคริปโตเคอเรนซี่ Ripple XRP” by fxtmthimages (licensed under CC BY 2.0)

Key Takeaways:

  • The SEC filed another Motion to Compel Ripple to produce relevant video/audio recordings of specific meetings.
  • The regulator also alleged that Ripple did not cooperate which is why plaintiff’s involved the court.
  • Meanwhile, XRP prices are trading in a descending triangle pattern.

NEW DELHI (CoinChapter.com) — The US Securities and Exchange Commission filed a new Motion to compel against Ripple. The market regulator demanded video and audio-taped recordings of certain meetings between current and formal Ripple executives and employees.

In a letter to Judge Sarah Netburn, the SEC alleged Ripple failed to inform the regulator about its regularly recording staff meetings. However, a key former Ripple employee testified to it in a deposition last month.

Meanwhile, Ripple’s native token XRP is moving in a descending triangle pattern on the daily charts. For example, the Ripple token fell 14.12% in a week, between August 24’s high of $1.267 to August 31’s low of $1.088.

Ripple Lawsuit Updates

The latest move comes a day before August 31’s key hearing, where the court would rule on the privilege issues dragging on since April. In addition, the SEC alleged that Ripple didn’t cooperate with the regulator, which is why the regulator involved the court.

Despite the SEC’s request for relevant recordings in its very first document requests to Ripple in January 2021, Ripple never informed the SEC that Ripple routinely recorded staff meetings until a key former Ripple employee testified to that in her deposition earlier this month, as described in more detail below

SEC in its letter

Ripple’s former Chief Compliance Officer Antoinette O’Gorman revealed that the fintech firm routinely recorded staff meetings in her deposition.

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The letter also states that Ripple agreed to produce the recordings on the condition that the SEC doesn’t seek to obtain any relevant recordings that it may learn about later, including from the September depositions of Ripple’s top executives. Moreover, the SEC asserted that Ripple withheld a vast amount of potential evidence from the plaintiff.

Additionally, the plaintiff requested the production of responsive recordings again, which it had requested back in January. Ripple acknowledged that it had hidden the routine recordings’ information from the plaintiff.

Price Charts

Meanwhile, XRP prices are moving in a descending triangle pattern since it exhausted its bull run that began on July 21. In detail, a descending triangle is a bearish chart pattern created by connecting a series of lower highs and a series of lows.

Nonetheless, XRP prices are bullish across all time horizons, as indicated by the 50-Day (Green) and 200-Day (Red) Moving Average trendlines. Also, the two MA lines seem to be forming a golden cross.

XRP prices moving in descnding triangle pattern. Source: XRPUSD on Tradingview.com
XRP prices moving in descending triangle pattern. Source: XRPUSD on Tradingview.com

If XRP breaks out below the lower trendline, it might lose 32% of its prices. However, bulls would try to consolidate at immediate support at $1.027. The next support for XRP is at $0.949, followed by $0.850.

In case of upward movement, Ripple would find resistance at $1.200, followed by $1.234. In the unlikely event bulls breach above $1.234, the next target would be at $1.292.

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Trend-based momentum oscillator MACD charted a bearish crossover on August 24. A bearish crossover occurs when the MACD line (12-Day and 26-Day EMA difference) moves below the MACD signal line (9-Day EMA of MACD).

MACD is bearish for XRP. Source:  XRPUSD on Tradingview.com
MACD is bearish for XRP. Source: XRPUSD on Tradingview.com

A bearish MACD might worry bulls, pulling prices down further. However, the relative strength index is at 53.83, firmly in the neutral regions.

At the time of writing, XRP was trading at $1.15, up 4.43% on the day.

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