XRP Hits Multi-Week High as Focus Shifts on Tit-for-Tat Lawsuit Against SEC

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XRP was among the biggest winners in the cryptocurrency market on Tuesday, although most of its top competitors, including Bitcoin, saw large sell-offs.

The Ripple blockchain’s native token rose 19.46 percent to an intraday high of $ 0.52 during the Asia Pacific session. While it failed to extend its upside, resulting in an immediate rejection that brought its price back below $ 0.50, the bullish move woke XRP out of its fundamental, dormant state.

A defensive attack?

In retrospect, XRP remained a sub-par asset after the SEC filed a lawsuit against its parent company Ripple Labs in December last year.

Regulators accused the San Francisco blockchain firm and its top executives of selling illegal securities in the form of XRP. Ripple had control of the delivery and distribution of XRP in the early days, and even efforts to prove decentralized control of the token have turned out to be cosmetic in nature.

Many exchanges have decided to remove XRP from their trading platforms until further notice. These included the leading US cryptocurrency exchanges Coinbase and Binance, the world’s largest cryptocurrency trading platform by volume. Meanwhile, XRP / USD remained unpredictable at best, seeing wild moves up and down as it tried to stay on track with the rest of the bullish cryptocurrencies.

However, some effort has been made this week to offset the fundamental negative trend in the Ripple market. According to new legal filings, some third party defendants who identify themselves as XRP owners have filed a lawsuit against the SEC alleging “misconduct and / or gross negligence and gross misuse of powers related to” its allegations and claims related to the digital asset XRP. “

“It’s not just about Ripple’s current distribution of XRP, but also whether or not today’s XRP owned by XRP holders will be considered securities as most US exchanges have completely delisted and / or suspended XRP trading, as a result of which the XRP held by XRP holders is becoming non-negotiable and therefore useless, “wrote XRP holders’ attorney, John Deaton, in a March 14 letter to Torres.

“The SEC had an opportunity to amend the complaint and clarify the markets, but has instead transferred that responsibility to this honorable court.”

What’s next for XRP?

Technically, not much has changed with the Ripple token.

Ripple is traded within a parallel channel area. Source: XRPUSD on TradingView.com

The XRP / USD rate continues to hover within a sideways consolidation area and fluctuates between two trend lines as it waits for a price breakout. The pair broke just above the upper trendline resistance of its channel but later ended up back in range.

Over longer periods of time, XRP is still making lower highs and higher lows, which puts its bias in a neutral category. So it seems that only the outcome of the lawsuit can determine the long-term bias of the Ripple token.