xrp cryptocurrency price

Ripple Is Braced For A Bombshell As XRP Nears Price ‘Death Cross’

Ripple Is Braced For A Bombshell As XRP Nears Price ‘Death Cross’
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Ripple, the company behind the cryptocurrency XRP, is preparing to face a bombshell after a judge ruled that a former regulator could be questioned as part of the ongoing legal battle over the $1.3 billion XRP sale.

However, the charts show that the 50-day moving average for XRP price is about to drop below the 200-day moving average – a pattern known as a “death cross” – suggesting more XRP price pain may be in the offing. The Way (Subscribe now to Forbes CryptoAsset & Blockchain Advisor and discover eligible cryptocurrencies for 1,000% gains).

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Late last year, the Securities and Exchange Commission (SEC) sued Ripple, co-founder Christian Larsen, and CEO Bradley Garlinghouse in New York on the grounds that XRP should be treated as a security similar to the company’s stock and was never registered as such.

Ripple denies these allegations and argues that the SEC cannot regulate XRP because it is a method used for international and domestic transactions.

On Thursday, New York District Court Judge Sarah Netburn ruled that former company finance director Bill Hinman can be questioned by Ripple — who is now scheduled to appear in court on July 27.

“This is not an ordinary enforcement case by the SEC,” Bloomberg Netburn was quoted as saying on a conference call Thursday, adding that Hinman’s statement would not “open the floodgates” to government officials who have spoken out about laws, regulations or policies as the Securities and Exchange Commission alleged when it sought to block Hinman’s testimony. She said the case “involves important political decisions in our markets, the amount in question is large and the public’s interest in this issue is great.”

In 2018, Hinman gave a speech in which he said major cryptocurrency Ethereum is not a security and Ripple will attempt to draw comparisons between XRP and the ethereum token while making suggestions that Hinman’s former law firm membership in the Enterprise Ethereum Alliance created a conflict of interest.

But the reaction to the ruling was muted and commentators called it a “small victory”.

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Stephen Bally, partner of Anderson Keel, said via Twitter. “This is a small battle, not a war.”

“Ripple has achieved yet another small victory in its ongoing battle with the Securities and Exchange Commission,” Alexandra Clark, sales trader at UK-based digital asset broker GlobalBlock, wrote in comments via email.

The price of XRP has collapsed by 70% since it peaked at around $2 in April, reflecting the broader cryptocurrency boom and bust. Although, Ripple’s XRP is still up about 160% since the beginning of the year.

Its recent bearish trading pattern, which is set to produce the first “death cross” for XRP in five months, is widely seen as a bearish market signal although some consider it a lagging indicator.

Bitcoin saw a cross trading pattern in June and didn’t drop further as a result but also failed to make up any ground after the sell-off in May. When bitcoin experienced a cross trading pattern in March 2020, it heralded a massive bullish bitcoin rally that helped even smaller cryptocurrencies surge to all-time highs.

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