SEC v Ripple: SEC Files Motion to Revoke XRP Holder Representation
Key Insights:
XRP followed the Monday 6.47% rally with a 2.14% gain to wrap up the day at $0.3731.
Updates from the SEC v Ripple case and the sub-committee hearing on Capitol Hill failed to send XRP into the red.
The technical indicators are bullish, with XRP sitting above the 200-day EMA.
On Tuesday, XRP rose by 2.14%. Following a 6.47% rally on Monday, XRP ended the day at $0.3731.
A choppy start to the day saw XRP slide to an early low of $0.3515 before making a move.
Steering clear of the First Major Support Level at $0.3489, XRP rallied to a late high of $0.3767.
XRP briefly broke through the First Major Resistance Level at $0.3757 before easing back to sub-$0.3740.
Support from the broader crypto and US equity markets delivered the upside.
The more bullish investor sentiment muted news updates from the SEC v Ripple case.
SEC Files Motion to Revoke Amici Status Granted to XRP Holders
Overnight, defense attorney James Filan shared an SEC motion requesting the courts to revoke the Amici status granted to XRP holders.
Filan said,
“The SEC, in a heavily redacted letter alleging threats against an expert, asks Judge Torres to revoke amici status granted to XRP Holders and to bar John Deaton from any further participation in the case.”
According to the filing, the SEC opposes “six XRP investors’ motion to file an amicus brief regarding the opinions of one of the SEC’s experts.”
The SEC also referenced tweets from John Deaton’s Twitter account.
While a court ruling would not impact the Ripple defense and chances of a settlement or a win, the SEC attempts to limit expert testimony rebuttal.
Amici Curiae is an individual or organization who is not a party to a legal case but is permitted to assist a court by offering information, expertise, or insight that has a bearing on the issues in the case.
In 2021, the court granted amici status with John Deaton representing XRP holders. Deaton has been attempting to rebut SEC expert testimony. The SEC expert testimony is in reference to Patrick Doody, who testified to the court on what XRP holders considered when buying the token.
Deaton is representing XRP holders and had requested permission to write a brief on behalf of the Amici to provide the court with the reasons behind more than 67,000 holders purchasing XRP.
XRP Price Action
At the time of writing, XRP was up 0.03% to $0.3732.
A mixed start to the day saw XRP rise to an early high of $0.3734 before falling to a low of $0.3678.
Technical Indicators
XRP needs to avoid the $0.3671 pivot to support a run at the First Major Resistance Level (R1) at $0.3827.
XRP would need support from the broader market to break out from the Tuesday high of $0.3767.
In the case of an extended crypto rally, XRP could test the Second Major Resistance Level (R2) at $0.3923 and resistance at $0.40. The Third Major Resistance Level (R3) sits at $0.4175.
A fall through the pivot would leave the First Major Support Level (S1) at $0.3575 in play.
Barring an extended sell-off, XRP should avoid sub-$0.35 and the Second Major Support Level (S2) at $0.3419.
The Third Major Support Level (S3) sits at $0.3167.
This morning, the EMAs and the 4-hourly candlestick chart (below) sent a bullish signal.
At the time of writing, XRP sat above the 200-day EMA, currently at $0.3463. Today, the 50-day EMA pulled away from the 100-day EMA and converged on the 200-day EMA, both indicators are price positives.
A bullish cross of the 50-day EMA through the 200-day EMA would support a breakout from R1 to bring R2 and $0.40 into play.
However, a fall through the 200-day EMA would likely test S1 and support at $0.35.
This article was originally posted on FX Empire
