In a recent development in the ongoing legal battle between the SEC and Ripple, a New York Judge has just ruled in favour of the SEC, and ordered Ripple to provide financial documents, as well as other information concerning the sale of XRP tokens by Brad Garlinghouse and Chris Larsen in 2020.
This comes after Ripple won a partial victory against the SEC in July last year when Judge Analisa Torres ruled that Ripple's sales of XRP weren't securities as the SEC claims.
The current ruling by the court aims to determine whether these XRP sales in 2020 did breach securities regulations.
According to a filing from the SEC last month, the SEC would like Ripple Labs to provide
financial statements for 2022 and 2023, as well as every last contract and agreement before and after the sales of XRP tokens in question.
This request aims to gather data to support the SEC's claims, and also to assist Judge Torres in determining the appropriate course of action.
The SEC also wants to determine whether Ripple should face sanctions and civil penalties for its actions since the legal battle began in 2022.
Ripple, on the other hand, has pushed back against the SEC's request, and has called the latest developments "irrelevant and burdensome".
According to Ripple, the SEC is trying to gather unnecessary material that is irrelevant to the case. Furthermore, Ripple also argues that the SEC has already done enough and that the fact-finding deadline has passed.
On Monday, Magistrate Judge Sarah Netburn issued an order, requiring Ripple to hand over these requested financial records.
This order shows the court's determination to stay open, and to get thorough information to assist Judge Torres in reaching well-informed conclusions on possible civil penalties against Ripple.
The result of this legal dispute will also have a big impact on the crypto market as a whole because if the court rules that these institutional sales of XRP broke securities laws, the bears might have a field day on XRP and the rest of the market.
Overall, industry watchers are keeping a close eye on the court proceedings, to see what comes next concerning the regulatory frameworks around the crypto industry.
According to a recent tweet from renowned analyst, Ali Martinez, the TD sequential indicator may now be flashing buy signals on XRP.
Ali speculates that XRP may now be poised for an upswing that might last between one to four weeks.
How true could this be?
One thing to keep in mind is that XRP currently trades at around $0.5, and is facing a little bit of bearish pressure on most timeframes.
In the charts, we can see the reason for all of this bearishness, as shown below:
The chart above shows that XRP has been trading on top of an ascending trendline throughout 2023.
The cryptocurrency is currently testing this ascending trendline again, and if what Ali says is true, we are about to see a rebound.
The chart above shows that XRP will likely attempt a retry at $1 between now and the next month, as Ali says.
This means that in February, XRP's price gain can be anywhere between 80% to 100%, depending on where the bears catch up to the bulls.
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