Ripple’s fight for the sale of $ 1.3 million in XRP continues and heats up with a new decision from a judge. On this occasion, this judge ruled that a former regulatory official can be questioned in the investigation process. All of this happens as the 50-day moving average of the XRP price is about to drop below the 200-day moving average. What does this mean for the expected performance of XRP? Let’s see.
Late last year, the Securities and Exchange Commission (SEC) sued Ripple, its co-founder Christian Larsen, and its CEO Bradley Garlinghouse in New York. The reason? They claimed that XRP should be treated as a security similar to the company’s stock and was never registered as such. Since then, Ripple has denied the claims and argues that the SEC cannot regulate XRP because it is a medium used in domestic and international transactions.
What did the judge decide on the XRP case and the SEC?
On Thursday, New York District Court Judge Sarah Netburn ruled that former SEC director of corporate finance Bill Hinman can be questioned by Ripple. In that sense, his appearance in court is scheduled for July 27.
In 2018, Hinman delivered a speech in which he argued that Ethereum is not a security and Ripple will attempt to make comparisons between XRP and ETH. However, Hinman’s former law firm’s membership in the Enterprise Ethereum Alliance created a conflict of interest.
However, the reaction to the ruling was quiet and commentators called it a “small victory.” “You don’t win a case by having a judge order a deposition,” said Stephen Palley, partner at Anderson Kill, via Twitter. That’s a little battle. It is not war.
Ripple is approaching a point of no return
Meanwhile, XRP must overcome certain difficulties in the market. In the world of finance, there is a pattern known as the “death cross” that is quite feared. This happens when the 50-day moving average falls below the 200-day average. This suggests that there could be more drop to come in the price of XRP.
The price of XRP has plunged 70% since it spiked to a peak of nearly $ 2 in April, reflecting a broader cryptocurrency boom and bust. However, XRP is still up around 160% since the beginning of the year.
Bitcoin saw a ‘death cross’ trading pattern in June and did not fall further as a result, but has also not regained ground after a sell-off in May. When BTC saw a trade pattern with the death crossover in March 2020, a large Bitcoin bull run emerged that helped even smaller cryptocurrencies hit all-time highs.