Ripple (XRP) Price Remains Green Despite Bearish Crypto Market

Key Insights

• Alderoty asserted that the SEC has neither labeled XRP as security nor has the power to do so.
• Alderoty called the SEC's legal action against Ripple a "sham" or a "rug pull" on investors.
• Last week, Ripple's XRP attempted to break upward over the $0.40 resistance level.

For two years now, Ripple (the most significant public holder of XRP) has defended itself repeatedly against the US Securities and Exchange Commission (SEC).

Recently, a New York Times article was published titled "Inside a Crypto Nemesis' Campaign to Rein In the Industry."

In this article, the author mentioned that the SEC accused Ripple in 2020 of marketing "unregistered securities" and that a federal court is expected to pass the final verdict over the coming months.

While seemingly harmless, the title and contents of the article riled up Stuart Alderoty, the general counsel for Ripple.

Reacting to the article in a tweet, Alderoty expressed his displeasure at the author of the article's choice of words and mentioned that XRP is not a security until the court deems it so.

SEC Cannot Classify Ripple XRP as a Security – Alderoty 

Soon after the article's publication, Alderoty promptly corrected the New York Times's choice of words. In a tweet published, Alderoty asserted that the SEC has neither labeled XRP as security nor has the power to do so.

To be clear, he said, "the SEC has not designated XRP as a security, nor does it have the authority to do so."

He went further to say that the Securities and Exchange Commission may only ask the court if XRP is a security and will then decide whether XRP is indeed a security.

In the past, Alderoty has repeatedly criticized the SEC under Gary Gensler's leadership. Alderoty claims that despite the agency's claims that they are out to protect investors, it is more concerned about "defending its turf." Alderoty called the SEC's legal action against Ripple a "sham" or a "rug pull" on investors.

The crypto community has questioned the SEC's enforcement-based approach to crypto regulation. As a result, many crypto and blockchain giants, including Coinbase, the blockchain association, and several others, have come out to aid Ripple in its fight with the SEC.

Over the last few months, nearly 16 organizations have submitted amicus curiae filings, making it likely that Ripple will come out victorious.

XRP Price holds Its Grounds 

Last week, Ripple's XRP attempted to break upward over the $0.40 resistance level. However, the bears reversed the price, bringing the cryptocurrency back to the $0.35 zone.

However, compared to Bitcoin and Ethereum, XRP didn't fall as hard. XRP is currently consolidating below the 100 simple moving average and the $0.380 resistance at the time of writing.

On the 4-hour chart of the XRP/USD pair, a significant bearish trend line with resistance near $0.371 can be drawn.

However, depending on the strength of the bulls, the price of the cryptocurrency may rise toward the $0.380 resistance or the 76.4% Fib retracement level if this trend line resistance is broken soon.

If this trendline is broken, the following key resistance would be near the $0.388 – $0.4 level. However, the primary resistance is the $0.40 level. And if the cryptocurrency price continues to move upward, it might test the $0.45 level.

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