SEC Case Against Ripple Is Falling Apart, XRP Rally Is Likely

SEC Case Against Ripple Is Falling Apart, XRP Rally Is Likely

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Observers note that the SEC is having difficulty in considering a lawsuit against Ripple.

The US Securities and Exchange Commission (SEC) has filed a letter to the Court insisting not to allow XRP holders to participate as a third party. It looks like an acknowledgment of the weakness of the SEC’s position. The XRP community may turn the case in the direction of dismissing the claim.

In December 2020, the SEC filed a lawsuit against Ripple, accusing it of an unregistered offering of securities worth $1.38 billion. Ripple provided evidence that the XRP token is not a security, but a cryptocurrency, like bitcoin (BTC) and Ethereum (ETH). Both of the leading cryptocurrencies are recognized in the US. Observers note that the lawsuit was triggered by a powerful banking lobby that is losing profits due to Ripple’s activities. With the XRP token and its flagship product ODL (On-Demand Liquidity), Ripple provides cheap and near-instant cross-border payments. It is also possible that the US political authorities are behind the SEC lawsuit, which fears losing leverage of international influence due to Ripple. In particular, it makes no sense to disconnect from the SWIFT system as a sanction to countries whose policy does not look acceptable for the United States.

If the XRP hodlers community joins Ripple in the process, the SEC is highly likely to lose this case. A letter with such a proposal was sent to the court on March 19 by attorney John Deaton. It is stated in the letter that as a result of the SEC lawsuit, a large number of XRP token holders suffered economic damage. Most exchanges have delisted XRP, the value enclosed in tokens turned out to be blocked. Deaton estimates the total losses as $15 billion.

The SEC has asked Judge Anelisa Torres not to allow hodlers to participate in the trial. According to the SEC lawyers, the Commission acts in the interests of investors.

If the judge does allow the community to become a third party in court, the SEC will likely lose the case. In this case, the likelihood of an XRP bullish rally is very high. XRP is already trading at the December price level. If the US exchange re-listing XRP due to the activities of the hodlers, its price will rise by 20-50%, according to market experts. And in the case of a positive court decision for Ripple, XRP may rise even more and take again the third rank in terms of capitalization. If the prices of BTC, ETH and BNB remain the same as now, this will happen if XRP is worth $0.93.

Popular trader and analyst Credible Crypto emphasizes that XRP is “building up momentum” from both a fundamental and a technical point of view. Pointing on technical analysis, Credible Crypto has calculated that the current resistance level for XRP is $0.7. The analyst believes that there it is highly likely that XRP will break this level up.