XRP Nothing But Computer Code With No Inherent Value, Says SEC In Its Appeal
Key Takeaways:
The SEC has taken a slightly different approach against Ripple in its appeal.
XRP price has formed a bullish technical pattern.
However, the XRP price continued crabbing.
NEW DELHI (CoinChapter.com) — The US Securities and Exchange Commission took a new approach to Ripple in its Aug 19 Motion to Certify Interlocutory Appeal.
In detail, an appeal is considered interlocutory when a party makes it before all claims are resolved as to all parties. In its motion, the SEC changed its stance on XRP from claiming XRP is a digital asset to stating that the token is a “computer code with no inherent value.”
The stark contrast in the regulator’s stance might fuel hopes of the court’s ruling on XRP not being a security becoming permanent. Moreover, the SEC noted that the court had reasoned that XRP buyers did not expect a profit from Ripple using their funds to improve the ecosystem.
The court also noted that buyers did not know if the money they spent buying XRP went to Ripple or a third party. However, the SEC stated there were grounds for a “difference of opinion” on whether crypto sales could “give rise to an investment contract under the Howey test.”
Furthermore, in its filing, the SEC claimed that during the lawsuit, it did not argue that the underlying asset of the Ripple investment contract was security. The SEC’s motion stated the regulator now believed that digital assets like XRP had no inherent value.
Moreover, the SEC stated that it did not “seek appellate review of any holding relating” to its case against Ripple.
Ripple CTO Explains The Lawsuit’s Current Dynamics
Ripple’s Chief Technology Officer David Schwartz took to X (formerly Twitter) to clarify the current status of the Ripple SEC lawsuit. Though Judge Anissa Torres ruled that XRP is not a security, the case is far from over.
Schwartz’s post came in reply to another user’s post on X, who asked if the court denied SEC’s filing, would the regulator have the option to appeal in the appellate courts.
Schwartz replied in the affirmative, stating that the SEC had the right to appeal adverse rulings after the lawsuit’s conclusion. Usually, the legal system encourages both parties to file appeals against adverse rulings after the case.
If each ruling were appealed by the “losing” side as it happened, you’d either have to pause the original case for a year every time a party appealed, making it take forever, or you’d have lots of overlapping appeals both sides would have to deal with as the actual case is still going.
Schwartz explained
However, Schwartz said there is an exception to the rule for unusual cases, and the SEC claimed the Ripple lawsuit fell in the exception category. Per the SEC, regular case proceedings should halt till the appeal is complete.
On the other hand, Ripple CEO Brad Garlinghouse and co-founder Chris Larsen argue that even if the court grants the SEC’s right to appeal, the original lawsuit should continue in parallel.
XRP Price Moving Inside Bullish Pattern With Massive Target
Meanwhile, the XRP price has formed a bullish technical pattern called the ‘Falling Wedge.’
In detail, the technical pattern forms when the price fluctuates inside a pair of falling trendlines that would converge down the slope. The outcome of such downside patterns is typically a price breakout to the upside.
One key feature of the pattern is that volumes usually decline as the trendlines converge.
The upside target for the breakout is equal to the maximum distance between the falling wedge’s upper and lower trendlines. Per the rules of technical analysis, theoretically, if the wedge pans out, the XRP price could rise 453% to reach $2.84.
Bulls Struggle To Keep XRP Price Above $0.5
The Aug 17 crypto market crash saw XRP price erase all its gains since May 16 for a moment before bulls recovered some of the lost ground. The judgment proclaiming XRP was not security helped the token spike nearly 99% on June 13, but XRP price has since been in a downtrend.
XRP price recovered following the recent market crash to reach a high of $0.56 on Aug 20 before bears forced the rally to a stop. On Aug 22, XRP price dropped nearly 3% to a daily low near $0.504 before recovering slightly.
If the downtrend continues, the token might drop to its support near $0.462. Failure of the immediate support level might force XRP to test the support near $0.4, erasing all its gains since late March this year.
On the other hand, the RSI for XRP is at the oversold threshold, with a value of 30.59 on the daily charts. Historically, oversold RSI levels often precede periods of consolidation or a bullish trend reversal.
As such, if buyers enter the market, the XRP price might rise to the 100-day EMA (blue wave) resistance near $0.562. Flipping the immediate resistance could help XRP price target the resistance near $0.636 before downside corrections pare gains.
The post XRP Nothing But Computer Code With No Inherent Value, Says SEC In Its Appeal appeared first on CoinChapter.
Filed under: Bitcoin - @ August 22, 2023 7:14 pm