Yerevan (CoinChapter.com) – XRP, the native token of Ripple Labs, traded at $0.86 in the London session Wednesday, above the significant $0.80 margin. The international money transfer token reflects the court proceedings in the lawsuit between the US Securities and Exchange Commission (SEC) and the blockchain company.
In hindsight, the law enforcement agency filed the said lawsuit back in December 2020.
It accused Ripple of selling unregistered securities in the form of its XRP tokens. However, the blockchain company defense played the “fair notice” card in the latest development, claiming that the lawsuit came out of nowhere without warning. Moreover, Ripple claimed that it never held an initial coin offering (ICO) in the first place.
On June 15, Magistrate Judge Sarah Netburn ruled on the motion put forth by the SEC. The said motion included several points, such as permitting SEC to notice 6 additional depositions and compelling Ripple to produce records relevant to its lobbying efforts. James K. Filan, an attorney involved in the case, tweeted the full document.
The law enforcement agency’s motion was granted only in part. Judge Netburn gave SEC the right to conduct further depositions. However, she denied the request to compel Ripple to produce records of their lobbying efforts. “Ripple’s fair notice defense centers on the activities of the SEC, not its behaviors,” asserted the Judge.
Attorney Filan also noted, that this development is beneficial for Ripple. As he replied:
Another attorney Jeremy Hogan, expressed his opinion on the news in simple terms.
Mr. Hogan is sure of the upcoming settlement in the lawsuit. He stated that more than 96 percent of all SEC lawsuits end in settlement. The attorney believes that the payment will include Ripple paying the penalty limited to dates pre-lawsuit. Furthermore, it will give the exchanges the confidence to re-list XRP.
What about XRP?
As Ripple gained some leverage in the lawsuit, XRP still consolidated between $0.82 and $0.90 margins in the London session Wednesday. In the bigger picture, $0.9 is the mid-channel margin for the token. The level has been trading in a channel between $0.80 and $1.04 since late May. In addition, the $0.9 line has proven to be a significant support margin in the past.
If XRP manages to break the mid-channel resistance, it can use the margin as additional support. The said line lies right below the current position of the 20-day exponential moving average (EMA-20). Should the bullish break succeed, the EMA-20 may provide additional assistance.
For now, XRP seeks support from the $0.82 margin, which has prevented breakdowns since May 23. However, according to Nasdaq, traders should be cautious of investing in XRP before the lawsuit’s outcome is clear.
In the recent courtroom win, Ripple was granted the right to hold on to the documents containing the company’s lobbying activity.
Judge Netburn also granted the SEC’s request for additional depositions. Nevertheless, experts agree on a positive development for Ripple Labs and a looming settlement in the case. If the predictions pan out, a full stop in the lawsuit might bring further gains for XRP. The token was traded in a channel, consolidating between $0.82 and $0.90 in the European session Wednesday.