Ripple and SEC comet story

Ripple and SEC comet story
Analysis
Ahura Chalki
Author:
Ahura Chalki
Published on: 22.02.2023 13:45 (UTC)
Post reading time: 1.39 min
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The ongoing legal battle between the SEC and XRP still affects its market price. While other digital assets are involved in supply and demand, XRP has an additional headache, which, if it wins, can encourage the whole crypto market. Still, if it loses the ongoing lawsuit, it will lose much more than other coins. 


The XRP token trades at around $0.3850, and at the time of writing, it ranks as the sixth largest cryptocurrency per CoinMarketCap. XRPUSD has climbed by 30.20% since the beginning of 2023. However, compared with Bitcoin, it has lost more than 25% this year.


SEC claims that XRP is a security, and Ripple faulted the filing by the SEC, arguing that XRP is not a security but a cryptocurrency. The legal dispute between the two continues in the Southern District Court of New York and could conclude before the end of the first half of 2023. Recently there has been more hope that they can win the case and try to attract more funds. 


We should remember that Ripple is a technology that acts as both a cryptocurrency and a digital payment network for financial transactions; released in 2012 and was co-founded by Chris Larsen and Jed McCaleb. Mentioned hopes to win the lawsuit helped the XRP to have a better performance in recent days compared with ADA, ETH, and even BTC. While ETH lost almost 7% and ADA is down about 9% from their recent highs, XRP lost less than 6%.


From the technical point of view, XRPUSD has a meaningful pivot at 0.3950 and key resistance at 0.4070. Trading under these mentioned levels means XRPUSD remains bearish. OBV trend line also conforms to that, as you can see in bellow figure.