• SEC v. Ripple case dragged on, counsel Stuart Alderoty stated that the regulator does not have the power to label XRP a security. 
  • Investor sentiment turned bullish with rising support for Ripple through amicus curiae filings from industry giants. 
  • Analysts predicted a rally in XRP, eyeing the $0.40 level as the target for the altcoin. 

SEC v. Ripple case has significantly influenced XRP price since the beginning of the legal battle in December 2020. With no updates from the court, Ripple’s legal counsel’s statement defending XRP and its position as a non-security is doing the rounds. There is a spike in bullish sentiment among XRP traders and the altcoin is likely to print an extended rally. 

Also read: Bank of England Deputy Governor warns traders against exchange-issued crypto tokens

SEC has no power to label XRP a security: Ripple’s legal counsel lashes out

Ripple (largest public holder of XRP) has defended itself against the US Securities and Exchange Commission (SEC) for nearly two years now. The regulator accused Ripple of unregistered sale of securities, XRP tokens being the “security” in question. 

Ripple’s legal counsel, Stuart Alderoty lashed out at this and made a new statement. Alderoty was quoted as saying:

To be clear, the SEC hasn’t labeled XRP a security, nor does it have the power to do so. One Judge put it this way: the SEC can only ask the question and the court ultimately answers.

US SEC regulated XRP by enforcement, stifling innovation

The SEC’s approach to crypto regulation by enforcement has been criticized by the community of developers, traders and the entire cryptocurrency ecosystem. Several crypto and blockchain giants like Coinbase stepped forward to support cross-border payment settlement firm Ripple in its defense against the SEC. 

Nearly 16 crypto and blockchain proponent entities have filed amicus curiae briefs in support of Ripple and held the US SEC responsible for the damage to the crypto industry. The SEC’s regulation by enforcement has resulted in the delisting of XRP across cryptocurrency exchanges. 

XRP holders are awaiting re-listing of the altcoin across major cryptocurrency exchanges as the altcoin exchanges hands 90% away from it's all-time high of $3.40. 

Analysts predict extended bull run in XRP

XRP, the third-largest altcoin by market capitalization, could witness an extended bull run, according to analysts. Bob Mason, a technical analyst argues that XRP has bucked the bear market trend and needs to move through the $0.3593 pivot to target resistance at $0.3727. 

The expert has identified the first major resistance level R1 at $0.3727, second R2 at $0.3815 and $0.39. The third key resistance level for XRP price is R3 at $0.4038. 

XRP/USD price chart

XRP/USD price chart 

While the crypto market bleeds, XRP price has the potential to print an extended rally, yielding 14% gains for holders in the bear market. The analyst’s target for XRP price is $0.40. Mason believes that his bullish thesis would be invalidated if there is news of crypto platforms freezing withdrawals and filing for bankruptcy hurts trader sentiment. This could send XRP price to sub-$0.30 levels.


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