Are Buyers Getting Back to Ripple’s XRP as Legal Drama Heats Up?
Aiswarya Gopan • 2 min read
Ripple’s XRP is exhibiting signs of choppy trading but the price seems to be edging higher slowly as latest developments in the lawsuit between the company and the SEC return to focus, and pique investor interest in the cryptocurrency once again. At the time of writing, XRP/USD is trading at around $1.12.
The legal tussle between Ripple and the SEC over whether the XRP is a token or a security is back in the spotlight after the company filed a new motion in the court demanding the SEC to reveal its own employees’ XRP holdings. The motion was filed following numerous meetings between the two parties over the past few weeks in which the SEC refused to divulge this information.
Ripple’s legal team has offered the agency the option to provide this information by redacting personal information or even share it in aggregated form. What the company aims to do with this latest move is to attempt to prove that the SEC did not have any issues with its employees trading cryptocurrencies until 16 January 2018 – a time until when the SEC did not consider digital currencies as securities.
The SEC has until September 3 to respond to this motion, in which Ripple maintains, “At all times from 2013 until at least January 19, 2018, SEC employees were free to buy, sell and hold XRP without any restriction by the SEC.” This interesting development has the XRP community believing that the case could go in Ripple’s favor, driving up buying activity in the token once again after many weeks of lull on the legal front.
Leading crypto strategist and trader Scott Melker predicts an upcoming rally in Ripple’s XRP as long as it holds above the key level of $1.10. He expects its price to rise towards $1.50 and even towards $2 soon, based on his technical analysis.
Key Levels to Watch
On the 4-hour price chart of XRP/USD, most of the moving averages and the momentum indicator are exhibiting a bearish bias. Although, the 100 EMA, 200 EMA, 200 SMA as well as the MACD suggest some buying interest as well.
Ripple’s XRP is sitting above the immediate support at $1.02 but has some catching up to do to get past the pivot point at $1.16. A break above this level would confirm an uptrend and take its price higher to test resistance at $1.27.