Ripple’ small victory in the ongoing battle with the SEC is not enough to help XRP price increase in the near term
As AZCoin News reported, Ripple is preparing for a bomb blast after a judge ruled that Williman Hinman, former director of the U.S. Securities and Exchange Commission’s Division of Corporation Finance could be questioned as part of an ongoing legal battle over the $1.3 billion XRP sale. This seems to be good news for XRP price momentum, but can on-chain indicators do the trick?
Ripple’s victory is not enough to push XRP price because it’s near death cross
Based on the price chart, the XRP price 50-day moving average is about to fall below the 200-day moving average—a pattern known as the “death cross”—suggesting further XRP price pain could be on the way.
XRP is down 70% since rising to a peak near $2 in April, along with the market crash over the past few months. Even so, XRP is still recording a gain of around 160% year-to-date. But it’s still a long way from the ATH peak at $3.4 in 2018.
Its recent downward trading pattern, set to produce the first XRP “death cross” in five months, is widely regarded as a bear market signal although some consider it a lagging indicator.
Bitcoin saw a similar trading pattern in June and as a result, neither fell further nor created any ground after the sell-off in May. When BTC saw a death cross trading pattern in March 2020, it heralds a massive bull run that sends even smaller cryptocurrencies to all-time highs.
However, let’s talk a little bit about the so-called “small victory” that the XRP Army is proud of these days. New York District Court Judge Sarah Netburn ruled former SEC director of finance corporation Bill Hinman can be questioned by Ripple—whose court appearance is now set for July 27.
“This is not a run-of-the-mill SEC enforcement case,” Bloomberg quoted Netburn as saying on a conference call, adding that Hinman’s deposition wouldn’t open the flood gates on government officials who have spoken on laws, regulations, or policies as the SEC had claimed when it sought to block Hinman’s testimony.
Moreover, even in 2018, Hinman said that Ethereum is not a security, Ripple cannot use that as an argument to compare XRP and ETH. Commenting on this, Anderson Kill partner Stephen Palley said: “You don’t win a case by getting a judge to order a deposition. That is a small battle. It is not the war.”
That Ripple has paid a boatload of money to get a judge to order Hinman’s deposition is of course a win. But the thing is still a centralized money-making operation that has netted insiders with de facto centralized control a billion dollars plus. And that fact a judge lets a defendant take broad discovery provides little predictive power.
However, there are still many opinions in favor of Ripple. “Ripple has made another small victory in its ongoing battle with the SEC,” Alexandra Clark, sales trader at the U.K.-based digital asset broker GlobalBlock stated.
And of course, the XRP Army on Twitter is still enthusiastically supporting XRP. They even made many memes comparing XRP and Bitcoin.
— SHABBO (@ElShabbo) July 18, 2021
Elsewhere, public interest in XRP is at its lowest level in more than 8 months, since November 2020.
Source: Google Trends
While it could be a sign that the world is turning its back on XRP, this time period for everyone will be much longer. It is natural for the public interest in XRP to drop when the price is in a bearish phase. It is possible that we are currently in the accumulation phase.
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