Ripple Ready For A Bomb As XRP Approaches ‘Death Cross’ Price
Ripple, the company behind the XRP cryptocurrency, braces for a bombshell after a judge rules a former regulator can be questioned in the ongoing legal battle over the sale $ 1.3 billion worth of XRP.
However, the charts show that the 50-day moving average of the XRP price is on the verge of falling below the 200-day moving average – a pattern known as the “death cross” – suggesting that others XRP price pains could be ongoing (subscribe now to Forbes’ CryptoAsset & Blockchain Advisor and discover crypto blockbusters ready to earn 1000%).
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Late last year, the Securities and Exchange Commission (SEC) sued Ripple, its co-founder Christian Larsen, and its managing director Bradley Garlinghouse in New York City on the grounds that XRP should be treated as security similar to shares in the company and had never been registered as such.
Ripple has denied the allegations and argues that the SEC cannot regulate XRP because it is a medium used in international and domestic transactions.
New York District Court Judge Sarah Netburn on Thursday ruled that former SEC Corporate Finance Director Bill Hinman could be questioned by Ripple, whose court appearance is now set for the 27th. July.
“This is not a trivial application of the SEC”, Bloomberg Netburn quoted on a conference call Thursday, adding that Hinman’s testimony would not open the floodgates on government officials who spoke out about laws, regulations or policies as claimed by the SEC when it sought to block Hinman’s testimony. She said the case “involves important political decisions in our markets, the amount of controversy is substantial and the public interest in this case is significant.”
In 2018, Hinman gave a speech claiming that the major ethereum cryptocurrencies were not security and Ripple will attempt to draw comparisons between XRP and the ethereum token while suggesting that the membership of the former firm of Hinman’s attorneys at the Enterprise Ethereum Alliance created a conflict of interest.
However, reaction to the decision has been muted, with commentators calling it a “small victory.”
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“You don’t win a case by asking a judge to order a deposition,” Anderson Kill partner Stephen Palley said via Twitter. “It’s a little battle. It’s not war.”
“Ripple has scored yet another small victory in its ongoing battle against the SEC,” wrote Alexandra Clark, sales agent at UK digital asset broker GlobalBlock, in comments sent via email.
The price of XRP has slumped 70% since it peaked near $ 2 in April, reflecting a broader cryptocurrency boom and collapse. Ripple’s XRP, however, is still up around 160% year-to-date.
Its recent downtrend, which is expected to produce the first XRP “death cross” in five months, is widely seen as a bearish market signal, although some see it as a lagging indicator.
Bitcoin experienced a deadly cross-trade pattern in June and did not fall further as a result, but also failed to regain ground after a sell-off in May. When bitcoin experienced a lethal cross-trade pattern in March 2020, it heralded a huge bitcoin bull run that helped even smaller cryptocurrencies reach all-time highs.