- Ripple price is in a bearish channel on the 12 hour chart.
- In the long term, XRP is forming a symmetrical triangle.
- Ripple executives flatly refute the new attempts to investigate the SEC.
The battle between Ripple and the US Securities and Exchange Commission (SEC) escalated yesterday as the CEOs of a distributed ledger startup filed a protective order over their personal information. XRP price fell on the news.
The Saudi Electricity Company requests phishing of the defendant’s financial records
The two executives involved, Bradley Garlinghouse and Christian Larsen, filed a letter with the Southern District Court in New York Thursday asking a judge to block subpoenas sent by the Securities and Exchange Commission to six different banks requesting access to their personal financial information.
Lawyers for Ripple executives stated that the SEC was exceeding the appropriate scope of its investigation by claiming that the defendants linked their personal finances with those of the company. The initial focus of the investigation was transactions related to the unrecorded sale of 14.6 billion XRP, worth approximately $1.3 billion at the time, to retail investors beginning in 2013.
In order to fulfill the initial SEC requests, Garlinghouse and Larsen have previously agreed to hand over all trading records relating to the relevant XRP token sales and financial records relating to their compensation from Ripple.
The new legal orders focus on unrelated business activities such as everyday spending, including money orders, checks and electronic wire transfers.
Thus, these orders, as phrased, require everything from unrelated business proceeds to the amount of money you spend in the grocery store each week.
Ripple’s price fell 78% late last year after the lawsuit was announced. It recovered its losses in January and February of this year, but retail investors have had to manage significant volatility since then.
XRP Price Action Reflects Legal Tension
The 12-hour chart below shows a clear bearish channel for the price of XRP, showing the uncertainty unleashed by Ripple’s legal issues.
However, the current candle is forming a bullish hammer as the wick is more than three times longer than the body. In other words, the opening and closing occur in the upper third of the candle’s trading range.
The descending channel occurs in a symmetrical triangle extending back to the February high. Ripple price is approaching the top of the triangle which indicates that the cryptocurrency is on the verge of a breakout.
If the hammer holds on the 12-hour chart, it increases the odds that the symmetrical triangle is trending to the upside with the longest-term probability of an upward move of over 54% based on the measured movement of the formation.
As long as the lower trend line continues, the risk tends to the upside.
XRP/USD 12-hour chart
On the other hand, if the lower trend line of the triangle fails, it will drop to the February 28 low at $0.395 in a short time. Further price deterioration will increase the odds of Ripple dropping to the next critical support level at $0.362, the swing low in late February.