XRP jumps 19% as the battle with SEC shifts to Ripple’s advantage

"Hand holding silver Ripple XRP coin" by wuestenigel (licensed under CC BY 2.0)
“Hand holding silver Ripple XRP coin” by wuestenigel (licensed under CC BY 2.0)

Key Takeaways:

  • Ripple Labs scores a major win against the SEC as it discovers important evidence regarding the regulator’s policies.
  • Reacting to the news, XRP, Ripple’s native token, jumped 19% during the weekend.

NEW DELHI (CoinChapter.com) — XRP prices exploded on Saturday as Ripple Labs’s defense team scored a major win in its battle against the US Securities and Exchange Commission.

On Oct 7, Judge Sarah Netburn ordered the SEC to submit certain documents for in-camera review. The documents relate to the SEC’s meetings with law firms and contain an email chain with a third party seeking the regulator’s help analyzing its digital asset.

As the news spread, XRP, whose previous bull run seemed to have fizzled out, gained new life. The Ripple token rocketed 17.23% from Saturday’s low of $1.0448 to reach a high of $1.224 before prices pared, and XRP closed the day at $1.160, up 9.1%.

Ripple v/s. SEC Update

The documents that Judge Sarah Netburn would review include an email chain that could prove ex-SEC director William Hinman’s 2018 speech reflected the SEC’s policy. Interestingly, the regulator has maintained that the former director’s speech constituted his personal opinion and had no influence on the agency’s policies.

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In detail, the ex-SEC director gave a speech at 2018’s Yahoo Finance’s All Market Summit: Crypto. In his speech, Mr. Hinman asserted that the commission would not consider Bitcoin and Ethereum as securities. The latest debate between Ripple and SEC rests on this speech.

On Sept 24, Ripple’s legal team submitted a letter stating that descriptions of three documents from the SEC’s privilege log suggest they could be highly relevant to the defendant’s case. Two of these relate to the SEC’s meetings with law firms to discuss the SEC’s view on the status of digital assets.

The third document refers to an email chain that contains communication between the SEC and a third party. The defendants believe the third party ‘received guidance from the SEC to analyze its digital asset under the framework set forth in Director William Hinman’s 2018 speech.’

Ripple’s defense asserted that the regulator did not provide the privilege log earlier, else the defendants would have included all three documents in its motion filed Aug 10, 2021.

Defendants’ request is GRANTED. The SEC shall submit the two documents related to the SEC’s meetings with law firms and the email chain for in camera review, along with a submission explaining its privilege assertions for each of those documents, no later than October 15, 2021. The SEC shall file a redacted version of its submission on the public docket. Defendants’ response is due no later than October 22, 2021. SO ORDERED.”

Judge Sarah Netburn’s order

Furthermore, if the Judge confirms that the SEC’s insistence that Hinman’s speech was his personal opinion was not true, it would be bad for the regulator. For now, the Judge has ruled in favor of Ripple’s request to add the documents to the in-camera review.

However, the date for the review is not known yet.

XRP price Charts

XRP reacted to Ripple’s courtroom win by jumping upwards on Saturday. However, the Ripple token couldn’t repeat the performance on Oct 10. After reaching a high of $1.24 on Sunday, XRP pulled back. The Ripple token’s Saturday boost took it above the 50-day moving average line.

Also Read: MATIC jumps 12% to a 3-week high of $1.42; strong price corrections ahead?

Since XRP is also trading above its 200-day MA, the Ripple token is bullish across all time horizons. XRP tested resistance at $1.23 for the first time in a month but failed to stay above it. Bulls would likely try to conquer immediate resistance before targeting resistance at $1.288 and then at $1.339.

XRP failed to break above immediate resistance. Source: XRPUSD on Tradingview.com
XRP failed to break above immediate resistance. Source: XRPUSD on Tradingview.com

On the other hand, XRP has support at $1.11, near the 50-day MA line. The 26-day Exponential MA provides further support at $1.059, then at $0.995 near the 200-day MA line.

Meanwhile, the relative strength index for XRP is neutral, clocking 63.24 on the daily charts. RSI is a momentum indicator that measures recent price changes to determine if an asset is overbought or oversold.

The trend-based momentum indicator, MACD, is bullish for XRP. The MACD forecasts bullish momentum when the MACD line (12-day and 26-day difference of EMA) moves above the MACD signal line (9-day EMA of MACD).

MACD is strongly bullish for XRP. Source: XRPUSD on Tradingview.com
MACD is strongly bullish for XRP. Source: XRPUSD on Tradingview.com

The difference between the two MACD lines is plotted on the MACD histogram. XRP’s MACD histogram bars are above zero, indicating the momentum is bullish for the Ripple token. At the time of writing, XRP was trading at $1.174, up 1.16% on the day.

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