The ongoing SEC lawsuit has made Ripple CTO David Schwartz nervous – the XRP price doesn’t look good next week

The discussions surrounding the US Securities and Exchange Commission and Ripple Labs lawsuit were dominated by a series of moves and reciprocal actions between the two parties. Needless to say, while the case has progressed, it has still sparked backlash, including lawyers like Jeremy Hogan and Jesse Hynes.

As a rule, especially in such drastic cases, those involved are kept quiet about the whole matter. In the case between the SEC and Ripple, however, this time around is very different, as the Ripple site often takes the opportunity to gain support in public forums. Ripple CEO Garlinghouse is a particularly active participant, and now it looks like CTO David Schwartz can’t stand idly by anymore.

David Schwartz – CTO Ripple

It’s worth noting, however, that Schwartz, the newest guest in an episode of Think cryptonot to say anything particularly new. Recalling previous points from Ripple and Garlinghouse, the CTO said:

“Once upon a time someone asked the SEC about some kind of policy, principle, or way of finding out what is allowed and what is not allowed. However, you have not clarified anything. “

In addition, he added that “given the inherent difficulties in the US jurisdiction, the SEC has left things in the balance and pushed all innovation out of the US.”

The same view was emphasized by the CEO of Ripple a few months ago in an interview with CNBC. Garlinghouse said at the time:

“This is the only country on the planet that says XRP is not a currency. Whether Japan, Great Britain, Switzerland, Singapore – they all treat XRP as a currency. “

Faced with such a situation, Schwartz seems once again to position the issue as the “us and them” debate. It is worth noting that the ruling for this reasoning in the current case will have enormous consequences for the crypto community.

The status of XRP is an important aspect of the lawsuit, especially since defendants have stated that the SEC lawsuit is causing significant damage to the XRP market domestically and internationally, not least XRP’s liquidity.

Schwartz also mentioned why he thinks the project with XRP as a native token is the best choice. This can also be seen as an attempt to illustrate the variety of XRP use cases in view of regulatory hurdles. The CTO emphasized:

“You have no distribution problem here. There are no people trying to find ways to distribute assets. You don’t get pressure to sell from people trying to pay taxes when you hand over the property to them. It makes more sense to use a reputable digital asset. It’s easier for people to make money from. “

The operator added that choosing XRP completely avoids the “asset scaling” problem.

Ripple’s CTO was quick to make it clear that he is not advocating crypto projects that knock others down in order to be successful.

“What we have to do is develop equally.”

XRP next week

As both the SEC and Ripple seek a verdict in their favor, XRP is buried under a mountain of selling pressure during the broader crypto selloff. At the time of writing, XRP is trading at $ 0.629 and is down 17% over the past week.

XRP / USD 1 day | Source: TradingView

The descending triangle breakout has hampered XRP’s movement as losses piled by 40% from the lower trendline to the USD 0.48 support. The market saw a temporary rally, but the price of this altcoin did not surpass the 200 SMA (green). The focus has now shifted to the $ 0.54 defense but the area threatens to break.

As such, XRP has fallen below the 200 SMA for the first time since December 2020 due to continued downward pressure. Now, that long-term moving average is no longer a price support and bearish sentiment may build up further.

The Relative Strength Index (RSI) is in a bearish zone, and while a move into the oversold territory could lead to a slight rebound, the index hasn’t risen above 50 in the last month. If this continues, XRP will see lower lows next week. According to the Awesome Oscillator, bearish momentum is increasing and this has been confirmed by the XRP price action.

The Directional Move Index marks a downtrend as the -DI line holds above the + DI line, while the Directional Move Index (ADX) average of 36 indicates strong market direction.

With a closing price below $ 0.54, XRP will challenge the $ 0.48 support again. The control point of the visible area already shows an interest in XRP of up to 0.472 USD in the daily timeframe, so a bigger breakdown can be avoided. In the event that these levels collapse due to selling pressures, XRP could find help around the late February levels of $ 0.35-0.4.

You can see the XRP price here.

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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