The largest cryptocurrency exchange in the United States, Coinbase, has formally filed an Amicus Brief in support of Ripple Labs Inc. in the ongoing two-year-old lawsuit between the U.S. Securities and Exchange Commission and the latter.
Recently, James Filan, an attorney and former federal prosecutor who is representing Ripple Labs, sent out a tweet containing a court document revealing that U.S. District Judge Analisa Torres had granted several parties (including industry group the Blockchain Association and major cryptocurrency exchange operator Coinbase, Inc.), the ability to file amici briefs.
According to the document, these parties, which included businesses and individuals, had until 18 November to submit their official filings.
According to Coinbase's filing, there was the question of whether, at the time the lawsuit was first served, the SEC provided the defendant with "fair notice" or adequate warning before taking legal action against them.
The SEC's assertion that Ripple's XRP tokens were indeed unregistered securities was further contested in brief.
Furthermore, Coinbase urged the government body to create more transparent regulations for the cryptocurrency industry and added that the current "regulation by enforcement" strategy taken by the SEC is inappropriate.
Coinbase also mentioned in the brief that there currently needs to be a functioning market for digital asset securities in the United States due to the absence of clear rules and regulatory frameworks.
During the heat of the FTX insolvency saga, Ripple's market value fell by more than a third, and it experienced its second-worst weekly candle since May.
After XRP hit a $0.5 high last week, the price of the cryptocurrency hit the descending (blue) line, which now serves as support.
XRP is now testing this level as support. If the cryptocurrency falls and closes below this level, its price is anticipated to fall to around the $0.24 zone (its lowest since January 2021).
As far as fundamentals go, a break and close below the $0.30 zone would send the cryptocurrency into a freefall under the influence of its bears. In such a circumstance, a prolonged bear market will become a real possibility.
The RSI of the cryptocurrency is still in the oversold zone and is now reaching neutral RSI conditions.
The lower Bollinger band on the cryptocurrency's daily chart sits right on top of the descending trendline around the $0.32 zone, the middle Bollinger band sits around the $0.45 resistance, and the upper Bollinger band sits around the $0.55 zone.
Overall, the cryptocurrency is bearish over the last day and had fallen by 4% in the previous 24 hours, as calculated by CoinMarketCap.
Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.