Attorney Representing XRP Holders Predicts Next SEC Action, XRP Price Rises
In the case between the US Securities and Exchange Commission (SEC) and Ripple, the judge unsealed three sets of documents, making the XRP community curious about what will happen next. Attorney John Deaton, representing more than 64,000 XRP holders in the lawsuit, stated that the SEC could take two possible steps.
Lawyers predict the SEC’s next move
The new evidence includes the email sequence and testimony from Ripple CEO Brad Garlinghouse and the topic from moderator Chris Larsen.
Deaton suggested that it is “nearly impossible to prove any real correlation” between XRP price and Ripple public announcements. He added that the SEC must also prove that Garlinghouse and Larsen sold cross-border remittance brands in the United States.
The attorney also wondered if the SEC would attempt to claim that Ripple created a secondary market for XRP unless it could show that the two defendants sold XRP in the United States.
Although Deaton was granted legal aid status in the case, he was unable to see the unsealed documents.
Top Analyst Says XRP Will Explode After Lawsuit
In an interview with Thinking Crypto, analyst Credible Crypto said that XRP technicals are now pointing to more bearish action.
“XRP is not looking good right now…I think we could return to the $0.50 lows and push into weekly demand here. This level is also important as the price has seen a major upward move from here after about 6 months of consolidation.
So, a bullish or bearish consolidation breakout usually acts as support or resistance when price reverses. Therefore, just from a high timeframe perspective, you can expect this area to act as support as it has in the past.”
XRP/USDT chart | The source: Credible Crypto
Credible Crypto says there are many important fundamental reasons to hold XRP despite the ongoing bearish price action. According to the analyst, the lawsuit filed in December 2020 between Ripple Labs and the SEC alleging the sale of XRP as an unregistered security could eventually provide clear regulation for the token while the rest of space remains in limbo.
“The reason I still hold large amounts of XRP despite the sluggish price action is because I now see it as a hedge against the rest of the market. If this SEC lawsuit ends, and I think it will, although I don’t know when, it will ultimately benefit Ripple and XRP. Until then, XRP will essentially be the only cryptocurrency with clear regulation in the US…
Once the case is resolved, you can expect the XRP price to go up in full. So if you wait for the outcome of the case to intervene, you will be too late. You should bet now and if you succeed XRP will skyrocket, the SEC is forced to accept and can’t imagine what will happen.”
Current XRP price
XRP price has broken out of the upper boundary of a symmetrical triangle on the 4-hour chart and is forecasting a 21% rally to $0.75. However, it looks like there will still be a small bump before Ripple attempts to reach its upper target.
XRP will face a hurdle at the 61.8% Fib retracement level at $0.71 before reaching the bullish target of $0.75.
On the downside, the price might struggle to break above $0.75 where the Impulse Reversal Indicator (MRI) resistance line and the 78.6% Fib retracement level converge.
XRP/USDT 4 hour chart | Source: TradingView
If buy orders increase, the bulls can target the Jan 12 high at $0.81.
However, if selling pressure increases, the price is expected to find immediate support at the 200 4-hour simple moving average (SMA) at $0.69.
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