Proceedings from the Ripple versus SEC court case had a massive impact on the price of XRP.
After hitting lows of about $0.29 in June, the price of the cryptocurrency bounced, claiming highs of over 30%, and has even attempted to break the $0.4 resistance.
After almost testing the $0.40 resistance again yesterday (18th of September), the bears have managed to retake control, pushing back against the bulls and managing to defend the 100-day range between $0.30 – $0.40.
The price of XRP may reverse where it currently is (the $0.34 zone) and begins to trend up again.
If a daily candle closes above the $0.40 zone, it could signal that the bulls are in control again and that it's safe to buy, making $0.43 – $0.45 the next resistance section for bulls to worry about.
The SEC versus Ripple Labs court case has been on for years now. However, there have been several indicators that this hassle may be coming to an end very soon.
The most recent of these indicators is the newly proposed motions for "summary Judgement" filings by Ripple Labs and the SEC.
To put the raging court case to rest as soon as possible, the SEC and Ripple labs have filed joint motions for a federal judge to make an immediate ruling about whether Ripple labs violated US securities laws.
Both parties filed these motions on Saturday, September 17th.
To put "summary judgments" into perspective, one or more parties in a court case can file for one to be made when they believe there is enough evidence available for a ruling without needing to proceed to trial.
According to Ripple, the SEC has run out of answers to prove that XRP's operations violated security laws and indeed qualified as "investment contracts."
In a tweet, Brad Garlinghouse, CEO of Ripple Labs, stated that the SEC is no longer interested in applying the law. He also adds that the SEC is only looking for ways to expand its jurisdiction far beyond the authority granted to them by congress.
Stuart Alderoty, Ripple's general counsel, shared his thoughts in a tweet, stating that the SEC cannot identify any investment contract and cannot satisfy any prongs of the Supreme Court Howey test despite two long years of litigation.
The SEC's response to Ripple's claims is that there can indeed be an investment contract without a contract, obligations to the issuer, or rights granted to the contract purchaser. And as long as these laws exist, they have a say in court.
The motions for the Summary Judgement filings are still in play. They will determine which cryptocurrencies count as securities under US securities laws if they get accepted.
After the last filing in July, the price of XRP rose, almost touched $0.4, and subsequently fell right back to the $0.32 zone. It currently trades at $0.34 and may see a similar price increase in the coming weeks.
Disclaimer: The author's comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)