XRP On Thin Ice: SEC Case Heats Up, Sends Shockwaves Through The Market
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The XRP market is on a downward spiral as factors like crucial network fundamentals, global crypto macroeconomics, and price action deters bulls from going parabolic. After rallying from $0.33 to around $0.44 in January, the XRP price has since invalidated the rising trend after dipping toward $0.37 earlier this month. Nonetheless, the possibility of a breakout cannot be ruled out entirely, as the digital asset could burst from the multi-year consolidation.
As the XRP case nears the end, lawyer John E Deaton – the founder of crypto-laws.us – has recently indicated that the SEC could get some victory in that Ripple sold unregistered securities between 2013-2107. As a result, Deaton thinks the possibilities of a jury trial are even higher than before, contrary to many people’s expectations.
“If true (no injunction), there won’t be an injunction, no disgorgement, but a fine. But, as you know, I think the chances of a jury trial are higher than most people believe,” Deaton noted.
Moreover, the lawyer has argued that Ripple may have violated some United securities laws through the XRP sales.
Once again I will say:
Ripple’s offers and sales of #XRP may have violated U.S. securities laws. And if the SEC were only pursuing Ripple’s sales, I would have never filed suit against the SEC.
— John E Deaton (@JohnEDeaton1) February 19, 2023
XRP Price Action & Market Analysis
While the XRP price has not outperformed the 2017/2018 bull market, the digital asset has been consolidating similarly to the pre-2016 market. As a result, the possibilities of breaking out of the multi-year wedge formation on the weekly timeframe are solid. Nonetheless, a pseudonymous crypto trader on Twitter @Leerzeit has outlined a negative sentiment on XRP’s market outlook.
According to @Leerzeit, XRP price closed the 12th red candle in a row against the total of crypto, a phenomenon not observed since early 2015.
As a result, XRP traders are now worried the XRP global market share is declining while Ripple continues to pour in more units from the escrow account to the secondary market.
Filed under: Bitcoin - @ February 20, 2023 12:21 pm