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John Deaton, the founder of CryptoLaw and attorney representing XRP holders in the Ripple-SEC lawsuit, strongly criticized the United States Securities and Exchange Commission (SEC) for the inconsistent arguments put forth in its defense of the ongoing Ripple lawsuit. Deaton pointed out that initially, the SEC asserted that Ripple itself was the “common enterprise.”
However, Ripple compelled the SEC to acknowledge that XRP holders do not receive any interest in the company merely by owning XRP tokens. Subsequently, the SEC shifted its stance and contended that the entire XRP ecosystem, encompassing all XRP holders globally, all exchanges that list XRP, and all vendors or companies accepting XRP as payment, constituted the common enterprise.
Deaton further expressed his criticism by highlighting that in order to support its excessively exaggerated assertion, the SEC planned to rely on an expert witness who claimed that all XRP holders were dependent on Ripple. Fortunately, the judge excluded this expert witness, bringing some positive news.
However, instead of accepting defeat, the SEC once again modified its common enterprise theory, abandoning its previous arguments and adopting a new theory that posits XRP itself as the common enterprise. Deaton characterizes this behavior as “a schizophrenic defense,” implying inconsistency and instability in the SEC’s approach.
XRP Current Market Standing
XRP (XRP) is ranked as the sixth biggest crypto based on its market cap, according to CoinMarketCap. It experienced a 1.08% decrease in price over the last 24 hours, taking its price down to $0.4252 at press time. This also put its total market cap at approximately $22.045 billion.
In addition, XRP weakened against both of the crypto market leaders Bitcoin (BTC) and Ethereum (ETH) over the last 24 hours. At press time, XRP was down 0.18% against BTC and 0.22% against ETH. As a result, 1 XRP was worth 0.0000157 BTC and 0.0002348 ETH.
The 24-hour drop in XRP’s price had flipped the remittance token’s weekly price performance into the red as well. At press time, XRP’s weekly price performance stood at -0.52%.
XRP Technical Overview
XRP’s price has been in a consolidation channel between $0.4216 and $0.4301 over the past week. The remittance token’s price did try to break out of the channel last Friday and was able to reach a high of $0.4446 before dropping back down to $0.4239.
The crypto was trading bearishly below the 9 and 20 EMA lines on its 4-hour chart as well, which may be a sign that it will drop to $0.4216 in the next 24-48 hours. The RSI indicator on the 4-hour chart supported this bearish thesis, with the RSI line trading below the RSI SMA line.
Before investors and traders can look to enter into a short-term long position for XRP, they will need to wait for it to clear the previously-mentioned $0.4301 mark. Traders with a higher risk appetite may look to enter a long position as soon as XRP’s price closes a 4-hour candle above the 9 and 20 EMA lines.
It may be too late to enter into a short position for XRP, given that it could bounce off of the lower level of the current consolidation channel at $0.4216. If this does not happen, then XRP’s price will dip into the demand zone between $0.4145 and $0.4216, where chances are good that it will bounce and break above $0.4216 again.
For a good risk-to-reward ratio on an XRP trade, it would be best to wait for XRP’s price to close a 4-hour candle above $0.4363. After this resistance, XRP will have a clear pathway to $0.4553.
Bulls were trying to push XRP’s price back above the 9-day EMA line, as was evident by the wick that was present under today’s daily candle. Should bulls succeed, XRP’s price will most likely rise to the 20-day EMA level, which was resting on the key resistance level at $0.4469. A break above this price would see XRP climb to $0.4781 if traders don’t take a profit.
A confirmation of the bullish thesis will be when XRP’s price breaks above the 9-day EMA line. Should it trade above this level at the end of today’s trading session, then it will target the 20-day EMA line in the following 24 hours.
Traders and investors may want to keep an eye on the daily RSI line, which was looking to cross above the RSI SMA line. This cross will serve as an early signal of XRP’s price making a move toward $0.4469 in the following 24-48 hours.
On the other hand, XRP’s price remaining below the 9-day EMA line over the next 24 hours will likely result in a continued consolidation between $0.4113 and $0.4316. During this potential consolidation, XRP’s price will be at risk of breaking $0.4113 and dropping to the next support level at $0.3875.
Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
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