XRP price today retreated below the key psychological level of $0.60 for the first time in about 10 days. While market participants and key players continue to discuss the loss of Coinbase‘s lawsuit against the US Securities and Exchange Commission (SEC), the altcoin experienced losses for the second consecutive day. This decline once again brought to light the complexity of the legal ground Ripple (XRP) is facing. What are the discussions surrounding the issue?
Ripple’s Legal Chief Speaks Out
Ripple‘s Chief Legal Officer, Stuart Alderoty’s comments raise the question of whether they could change the direction of their fight with the SEC. Discussing the SEC evidence evaluated by Judge Analisa Torres before the July 13 decision, Alderoty defends the commodity status of the XRP token and supports his claims with documents from the Coinbase case.
Coinbase‘s defense relies on Judge Torres’s decision regarding XRP, which evaluated that the token is not a security when sold through exchanges. This decision, which was considered a partial victory for Ripple at the time, now seems to be questioned as the judge in the SEC – Coinbase case denied the exchange’s request. Coinbase had asked the judge to dismiss the lawsuit brought by the SEC. Like with Ripple, the SEC believes Coinbase operates as an unregistered securities broker.
Are There Deviations in the Howey Test?
Stuart Alderoty questions the confusing definitions presented by the SEC while examining the allegations in the Ripple case. According to Alderoty, the SEC’s efforts to classify XRP based on securities laws involve deviations in the application of the fundamental “Howey” test.
The decision by Judge Analisa Torres dated July 13 marked a significant moment for Ripple as it questioned the Howey test. The classification of XRP as a security is now under great risk following this decision. Particularly, the fact that two federal judges have so far rejected this classification complicates the legal battle between Ripple and the SEC even more.
XRP Price After the Debates
Ripple (XRP) continues to move within a certain range in recent days. On the daily chart, it is stuck between $0.5670 and $0.6686. The red bars below the neutral line on the Awesome Oscillator (AO) are notable. The Relative Strength Index (RSI) has dropped below the 50 mid-line. This indicates increased selling pressure and a tendency for XRP to lose value.
The $0.5386 level emerges as an important support point for XRP. With support from this level, XRP could attempt a recovery and gather liquidity before testing the $0.6686 resistance. However, if the daily candlestick closes below the $0.60 level, a decline towards the low of $0.4853 for XRP seems likely.
