- Ripple has submitted its last legal filing in the ongoing SEC versus Ripple Battle.
- XRP is currently testing the $0.38 zone and may bounce to retest $0.41
- If XRP falls below $0.38 and closes below support, it may retest the $0.375 or the $0.374 zone
XRP and its parent company, Ripple labs, have been one of the most eventful parts of the crypto market, despite the bear market that has lasted throughout 2022.
The legal battle between Ripple Labs and the US Securities and Exchange Commission lasted for two years. This legal rift is one in which both parties have gone back and forth to prove whether XRP was a security at the time of its issuance in 2020.
In some ways, the legal woes XRP faces with the SEC have been one of its major setbacks. However, in other ways, XRP’s price action throughout 2022 has been relatively stable compared to that of the other cryptocurrencies across the market.
This week, the cryptocurrency fell by 0.12% just as the week began and is currently struggling at the $0.38 zone.
At the time of writing, the cryptocurrency is currently at its lows, along with the rest of the market, after dropping by 1% over the last day and by 5.2% over the last seven days.
However, despite the bearishness of the cryptocurrency over the last few days, there have been reports by Santiment, the crypto intelligence platform, that the trading volumes on XRP are starting to climb.
Santiment’s observation comes along with several other promising signs that predict possible bullishness on XRP over the next few weeks.
XRP’s Trading Volume Spikes
It now appears that the legal battle between the SEC and Ripple Labs is at its final stages after two long years.
The SEC and Ripple each submitted a redacted reply to the other’s opposition to summary judgment on 2 December.
In its motion brief, Ripple argued that the SEC has failed to establish that its 2013–2020 XRP offering constituted an offer or sale of an “investment contract,” making it a security under federal securities laws.
According to the document’s contents, Ripple implored the court to grant the defendant’s Motion and deny that of the SEC.
Ripple is pleased with the defense it has mounted on “behalf of the whole crypto sector,” according to Stuart Alderoty, the general counsel for Ripple in the ongoing legal dispute.
Follow the bouncing regulator.— Stuart Alderoty (@s_alderoty) December 4, 2022
“Howey provides a clearly expressed test for determining what constitutes an investment contract.” SEC 4/22/21
“Hinman’s speech provided thirteen expressly non-exhaustive factors that market participants could consider.” 12/2/22
Taking a jab at the SEC, Alderoty mentioned that Ripple has “always played it straight with the court” but that he “can’t say the same for its adversary.”
Meanwhile, Santiment noted in a tweet earlier this week that the rise in XRP’s trade volumes indicates that the retailers are up to something.
Although no significant event during the week might have triggered this surge in trading volume, the increase in volume may cause XRP’s retail price volatility to increase.
This spike in trading volumes was also accompanied by an almost 200% increase in the daily active addresses (DAA) for XRP. Since 30 November, the XRP DAA has been steadily increasing, rising from 51,161 addresses on 4 December to 161,000 addresses this week.
Time To Buy?
After rising above the $0.345 resistance, XRP has displayed considerable strength regarding price action. This is despite its failure to clear the $0.41 zone.
The cryptocurrency attempted a break above this level in late November, even managing to hit the $0.425 zone. However, the bears were ready and waiting at this point and sunk the cryptocurrency’s price below the $0.40 zone and before its 100-period moving average on the 4-hour chart.
The cryptocurrency price has declined to the $0.38 zone, where the bulls appear to be active.
The bulls are likely to keep the price of the cryptocurrency up and above this level and prevent the bears from sinking it lower. The resulting bounce from the bulls taking action may drive XRP up toward the $0.41 zone again.
Conversely, if the bears succeed in pushing the price of the cryptocurrency lower than this $0.38 zone, XRP may fall lower and even hit the $0.375 – $0.345 zone.
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