XRP rallies as “alcoholic” SEC risks losing lawsuit against Ripple Labs

XRP rallies as “alcoholic” SEC risks losing lawsuit against Ripple Labs
“how bizarre, a store that focuses on a particular niche of drunk women statues passed out with alcohol in hand usually” by ▓▒░ TORLEY ░▒▓ is licensed under CC BY-SA 2.0
  • XRP/USD spot pair registers 17% gains in 24 hours
  • SEC has been given an ultimatum to respond on withheld internal documents in 5 days
  • Non-compliance with the timeline could lead to the agency incurring monetary sanctions

JAIPUR (Coinchapter.com) – XRP logged 17% gains in the last 24 hours as traders assessed its backer Ripple Labs’ potential to win a major lawsuit filed against it by the US Securities and Exchange Commission (SEC).

The XRP/USD exchange rate reached $0.98 for the first time in more than two months, thereby closing in on the psychological price target of $1. At its lowest on Wednesday, the pair was trading for $0.84. That marked more than 14% profits.

SEC’s Dragging On Exercise

SEC has been taking forever to provide a conclusion of XRP’s supposed fact discovery. So when Ripple filed a motion against the financial lawmaker to produce internal documents regarding Bitcoin, Ethereum, and its token in early June, the agency pushed for an extension of the investigation by 60 days.

Related: XRP explodes 9% as Ripple vs. SEC battle continues

Judge Netburn called upon the SEC to produce the requisite paperwork twice. But, despite repeated orders from the presiding decision-maker, the federal agency has failed to respond, citing privilege issues.

“The short answer is Judge ordered documents produced “subject to a privilege assertion” and said “documents withheld on the basis of privilege must be identified on a privilege log.” The SEC submitted privilege logs claiming EVERYTHING is privileged and Ripple is “calling B.S.”

said Attorney James K Filan

Ripple CEO Brad Garlinghouse even compared SEC’s recent actions with an alcoholic’s behavior.

The fact discovery phase nears its end in 3 weeks. But the SEC has 5 days to respond on the status of its investigation. After that, monetary sanctions or complete lawsuit dismissal awaits, should the government body miss complying with the said timeline.

XRP Technical Setup

After a 16% rally since August 9, bulls are taking a breather. It should be noted that Ripple’s token had crossed into the overbought territory with the rally to $0.9. Relative strength index (RSI) readings spiked to 75.

XRP’s overall trend has been bullish since traders bought the $0.51 bottom in July. The crypto asset’s recovery has largely been a function of the broad cryptocurrency market rally. The XRP/USD exchange rate remains strong above the 20-day exponential moving average (EMA), 50-day, and 200-day moving average (MA) waves.

XRP/USD dipping after hitting overvalued prices
XRP/USD dipping after hitting overvalued prices. Source: XRPUSD on TradingView.com

However, the blockchain payment asset’s overvalued condition would call for a slight dip. Thus, $0.81, $0.83, and 40.85 are the potential levels worth looking out for.

Nonetheless, a significant movement in XRP prices would be subjected to the court’s decision. Bulls stand a chance to surprise bears from all corners if the fight ends in favor of Ripple.

The opposite would come to fruition if SEC, the plaintiff, somehow manages to prove XRP security, the chances of which are slim.

Related: Ripple Labs might win the lawsuit filed by SEC after this breakthrough.

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