XRP price drops 7% as SEC vs. Ripple case goes on with a ‘Wall Street watchdog’ on patrol

XRP price drops 7% as SEC vs. Ripple case
image from medium.com

Key Takeaways:

  • XRP, the money-transfer token of blockchain company Ripple, the price dropped 7% in the previous 24 hours, in compliance with the rest of the market.
  • The Securities and Exchange Commission (SEC) appointed former Wall Street defense lawyer Gurbir Grewal as the director of the SEC’s Enforcement Program.
  • The Magistrate Judge granted both parties in the SEC vs. Ripple case with extention of expert discovery deadline.

YEREVAN (CoinChapter.com) – XRP consolidated for the previous week, compliant with ubiquitous declines on the crypto market. The XRP/USD price stood at $0.79 in Tuesday’s European session, a 7% decline in 24 hours. As a result, the token lost significant support, relevant since Jan 2021.

XRP Price Weekly Chart?

However, the weekly chart suggested a breakout underway, as the price action formed a Symmetrical Triangle. The formation features two converging trendlines with a similar slope, controlling the price action. It does not predict a particular bias after the asset exhausts the setup but does indicate a significant move underway.

XRP retested the Triangle’s support for the previous three weeks and could take off a new leg up to meet the resistance. If the prediction pans out, the money-transfer token could gain 36% in Q1 2022.

XRP Price Weekly Chart
Ripple (XRP) lost 7% and is a significant support trendline. Source: XRPUSD on TradingView.com

Also read: Crypto rally pushes XRP to two-month high — another 40% upside move expected.

Meanwhile, the XRP’s native Ripple struggles against the SEC in a lawsuit filed in Dec 2020. Moreover, the governmental agency hired a new Enforcement Program Director, which could not play well for Ripple.

What’s happening at SEC?

As mentioned, the SEC hired Wall Street watchdog Gurbir Grewal. During his former position as New Jersey’s attorney general, the lawyer reconditioned police use-of-force training and disciplinary transparency and spoke about Asian-American hate crimes.

The lawyer has already hinted at higher fines for wrongdoing on Wall Street and said: “We can’t arrest them. But, we can get them out of the industry.”

James K. Filan, an attorney involved in the SEC vs. Ripple case, tweeted about the newly appointed director. The news sparked an array of reactions from his followers. Some users questioned his “tough” approach with a bring-it-on attitude. Others pointed out that when Mr. Grewal goes to court, he “goes to win,” and his expertise would help clarify the case.

xrp price, XRP price drops 7% as SEC vs. Ripple case goes on with a ‘Wall Street watchdog’ on patrol

Also read: US SEC shows complications with Bitcoin ETF kinds

While the Commission welcomes the new Enforcement Program Director, the SEC vs. Ripple case drags on with a five-day extension granted to both parties.

SEC vs Ripple Case

In the latest case development, Ripple and SEC appealed to Judge Sarah Netburn to extend the lawsuit’s expert discovery phase by five additional days. The Judge granted the motion, and the phase will last until Jan 19, 2022. Mr. Filan tweeted the details, providing the appropriate rulings.

In detail, the discovery phase is a crucial part of the lawsuit, where both parties aim to obtain evidence from the opposing side and third-party experts. Judge Netburn has already ordered Ripple and the SEC to hand over internal documentation concerning the case.

Taking a step back, the law enforcement agency filed the said lawsuit against Ripple CEO Brad Garlinghouse and the former CEO Chris Larsen. The accusations included fraud and the illegal sale of 1.3 billion worth of XRP as “unregistered securities.”

Since then, Ripple aimed to obtain documentation emphasizing the definition of XRP as “cryptocurrency” and not “securities.” SEC claimed the opposite, while both parties consulted with independent experts.

Thus the expert discovery could shed light on the goings-on between the parties and the mentioned independent experts.

Also read:  SEC vs. Ripple drags on while the next big ruling might come in January, says attorney.

The crypto community will have to wait until Jan 19 to find further details as the parties turn in their findings. Moreover, the new appointee Mr. Grewal and his outlook as the Enforcement Director could influence the case’s outcome. As a result, the proceedings will likely drag well into Q1 2022.

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