Key Ripple Takeaways:
- Blockchain Startup Ripple Labs gained the right to seal documentation from the US Securities and Exchange Commission (SEC), in the framework of the ongoing lawsuit.
- Ripple’s native token XRP could eye a significant move ahead, as it is close to exhausting the ‘Symmetrical Triangle’ pattern, relevant for the past six months.
YEREVAN (CoinChapter.com) – XRP could be on the edge of a significant break in either direction. At the same time, Magistrate Judge Sarah Netburn granted Ripple’s Motion to Seal the privilege logs of their Oct 22 response to the SEC’s filing.
The latter referred to a chain of emails between the law enforcement agency and third-party experts concerning the SEC singling out XRP as ‘unregistered securities,’ while Bitcoin and Ethereum are not.
Defense lawyer and former federal prosecutor James K. Filan tweeted the news on Saturday. He added that the judge has not yet ruled if the SEC has to turn over the documents it claims are ‘privileged.’
In detail, the SEC filed the lawsuit in Dec 2020. It claimed that the initial XRP offering worth $1.3 billion was a sale of unregistered securities. In contrast, the agency’s former Division of Corporation Finance Director, William Hinman, gave a speech in 2018, saying that Ethereum and Bitcoin “offers or sales are not securities transactions.”
Ripple has used the ‘Hinman speech’ in the courtroom on multiple occasions and built one of its defense fronts around it, accusing the SEC of “extreme bias.”
What’s happening now?
Fast forward to the recent court proceedings; Ripple Labs sought to reinforce the mentioned defense front by compelling the SEC to deliver the chain of emails between the Commission and the third party of experts. What Ripple hoped to find was refers to XRP as ‘cryptocurrency’ and not ‘securities.’
The SEC fired back with a motion to make Ripple cough up their own ‘privilege logs’ attached to the case. However, Judge Netburn ruled in favor of the blockchain company.
In their Q3 2021 report, Ripple provided a short overview of the lawsuit. The startup asserted that the court proceedings entered the “expert discovery phase.” Additionally, the report stated that Ripple “will continue to seek to expedite the case as quickly as possible.”
The case is currently in the expert discovery phase, where each side exchanges expert reports opining on various aspects of the case. In response to an extension request by the SEC, the Court has ordered expert discovery to conclude by mid-January 2022.read the report.
While the lawsuit dragged on, Ripple’s native token XRP continued to consolidate in the Monday session. However, the digital asset flashed signs of an upcoming move.
Also read: Judge orders SEC to answer interrogatories as Ripple CEO accuses U.S. securities regulator of favoring Ethereum.
XRP in a Symmetrical Triangle
XRP traded in a pattern that could result in a significant break in either direction. Dubbed ‘Symmetrical Triangle,’ the formation features two converging trendlines, reducing the price swing amplitude as the pattern progresses. The Triangle has been instrumental for the past six months.
The Symmetrical Triangle is a neutral pattern; it does not predict the break vector. However, if the price breaks above the Triangle’s upper trendline, the price target would equal the distance between the high and low in the early stages of the formation. Thus, XRP’s target could stand at $2.70, a 150% gain from the current $1.10 value in a bullish scenario.
Also read: XRP price poised to grow higher as Ripple enters partnership with Middle Eastern payment giant.
Positive developments in the SEC vs. Ripple case could also be a bullish catalyst for the XRP price. As of publication, the court proceedings will officially extend until Q1 2022.