XRP breaks above a key resistance level even as SEC replies to Ripple’s letter

Photo by Jack Moreh on Stockvault
Photo by Jack Moreh on Stockvault

Key Takeaways:

  • Ripple Labs’ native cryptocurrency XRP broke above a critical resistance on Friday.
  • In Ripple v/s SEC lawsuit, the US regulator filed a reply to Ripple’s letter.
  • Cryptomarket rebounded by 14.5% after the B Word conference on July 21

NEW DELHI (CoinChapter.com) — XRP, the native crypto of Ripple Labs, climbed 18.18% from July 21’s low of $0.517 to July 23’s high of $0.611. Meanwhile, the crypto market ascended by 14.5% since July 21, buoyed by Elon Musk’s statement that both he and his company, SpaceX, hold Bitcoin in addition to Tesla.

In other news, the Securities and Exchange Commission (SEC) filed its reply to Ripple’s letter regarding a public statement by two SEC commissioners.

What the Price Charts Say

XRP rode the upswing to break above May 21- July 21 descending trendline as the crypto market climbed in sync. Moreover, the altcoin also tested critical resistance at $0.60 as it surged to the day’s high of $0.611 before correcting to $0.59.

XRP, XRP breaks above a key resistance level even as SEC replies to Ripple’s letter
XRP price trends on the daily chart. Source: XRPUSD on Tradingview.com

XRP’s Moving Average trend lines formed a death cross on July 18. However, it seems Tesla CEO Elon Musk’s statements added bullish winds to XRP sails. In addition to the Ripple crypto, Bitcoin and Ether gained and propelled the total crypto market.

While XRP’s prices are moving up, the altcoin’s 50-Day (Green), 100-Day (Yellow), and 200-Day (Blue) Moving Average trendlines are still above XRP prices. Thus, the digital asset is bearish in the short, mid, and long-term ranges. If the altcoin consolidates at this price, the next resistance is at $0.63.

Also Read: Axie Infinity follow-up: AXS logs new all-time high, more upside ahead?

XRP rose from the $0.509 price level, becoming a key support level if the rally fails. In addition, a further decline will bring into play support at $0.434.

However, declining volumes may worry the bulls.

Ripple momentum oscillators on the daily charts.
Ripple momentum oscillators on the daily charts. Source: XRPUSD on Tradingview.com

The relative strength index for XRP is 42.81. While the price momentum indicator jumped from oversold levels on July 20-21, it is now moving horizontally.

Moreover, the MACD histogram has moved above zero as well. The histogram plots the difference between the MACD line (12-Day EMA and 26-Day EMA difference) and the MACD signal line (9-Day EMA of MACD). Hence, the altcoin is favoring the bulls for now.

Updates On Ripple-SEC Lawsuit

On the Ripple v/s SEC front, the SEC has filed a response to the defendants’ letter. In hindsight, Ripple’s counsel had sent a letter to the presiding judge citing a public statement by SEC Commissioners Peirce and Roisman. The statement criticized the U.S regulator’s enforcement policies. In its reply, the SEC argued that it was established as a statute of five commissioners, the concerned statement is not a statement of the SEC itself.

Also Read: XRP avoids solid bullish fundamentals to drop to one-month low—what’s happening?

The SEC also pointed out that the defendants’ argument essentially means they are not liable ‘for violating a statute on the grounds of certain public statements by legislators who disagree with the statute.‘ The regulator added that even the full SEC could not waive the requirements of an act of Congress.

It also mentioned that the defendants couldn’t cite a single case in which the SEC repealed registration requirements by a supposed failure to issue ‘a particular kind of regulation or to bring a lawsuit sooner.

SEC’s reply concluded by highlighting that Ripple Labs and individual defendants’ arguments are based on ‘an inaccurate legal theory‘. The SEC also highlighted that it has repeatedly warned firms/individuals selling digital assets to comply with federal security laws.

However, legal experts pointed out that the SEC failed to address some major issues in its reply. The SEC dodged the fair notice argument, the crux of Ripple’s defense.

Recently, Ripple announced adding the University of Capetown, Reykjavik University, and New York University Abu Dhabi to its roster in the University Blockchain Research Initiative. Launched in 2018, UBRI aims to facilitate the advancement of the blockchain industry.

While Ripple does not lack in fundamentals, the lawsuit against XRP is hurting its prices. At the time of writing, XRP was trading at $0.59, up 0.33% on the day.

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