Key Takeaways:
- Money transfer token XRP could face a 25% value increase, based on an overall bearish setup.
- The SEC vs. Ripple lawsuit takes a new turn, as the Judge Torres slams the SEC’s motion to strike RIpple’s fair notice defense.
YEREVAN (CoinChapter.com) – XRP, the native token of Ripple Ledger, traded at $0.77 on Mar. 14, after a turbulent few days. However, it could gain 25% in value in the upcoming weeks, based on the Descending Triangle pattern. The latter entails a flat support line paired with a descending resistance.
Moreover, the Descending Triangle is a bearish pattern that has been relevant for nearly a year. XRP’s weekly chart shows that if the token further follows the setup, the price could avalanche after the mentioned uptrend, falling back to the flat support and possibly dropping as low as $0.20.
Santiment asserted that XRP became a “top topic” before the weekend. The platform additionally indicated that when any token peaks in social trends, it means “profit-taking is justified.”
The forecast played out, as the XRP price fell over 10% during the weekend.
Meanwhile, Ripple might have gained leverage in the lawsuit filed by the U.S. Securities and Exchange Commission against the company.
SEC vs. Ripple. What’s happening?
In detail, the SEC vs. Ripple lawsuit has been ongoing since Dec. 2020, and “fair notice” has been one of Ripple’s core defense strategies. In detail, the company argued that the law-enforcement agency had not given a warning before filing a lawsuit.
At the same time, the SEC tried to trump the argument by claiming they shouldn’t have to explain laws to each company separately. In other words, the prosecution leaned on the principle that ignorance of the law was no excuse.
The agency’s latest motion on Feb. 23 aimed to close the fair notice defense page for good. However, Judge Torres denied them the upper hand. Attorney Jeremy Hogan called the ruling “the most important to date.”
The attorney also added that the fair notice defense initially “put the SEC’s action on trial,” which could unhinge their authority. Additionally, Mr. Hogan claimed in May 2021 that if Ripple won the fair notice defense,” it becomes a persuasive authority on any company the SEC sues from this point forward.”
However, while Ripple bulls have a victory to celebrate, the lawsuit is far from over, and the upcoming developments will show how well the SEC could play its remaining cards.
