The SEC vs Ripple litigation has become so significant that it has already been the subject of an investigation by a congressional commission. Without a final court ruling, it appears that this commission has already determined that XRP is a security. Brad Sherman, the commission’s chairman, said:
“The authority has established that XRP is a security and is taking action against XRP. But for reasons I will discuss during the hearing, it has not taken action against exchanges on which tens of thousands of illegal securities transactions have taken place.
They know that [XRP] is a security. This means they operated illegal stock exchanges.”
Thus, it becomes evident that this is now about more than just the SEC and Ripple. If several cryptocurrency exchanges continued to provide XRP for trading despite the continuing proceedings, they would find themselves in confrontation with the US authorities.
Stuart Alderotys, the chief legal officer of Ripple, expressed his disapproval of MP Sherman’s comments and stated:
“If elected officials don’t understand that just the SEC filing means nothing … that’s more than worrisome.”
As a Harvard-educated lawyer, Congressman Sherman appears to be behaving against to common sense, says Ripple CEO Brad Garlinghouse.
Technical analysis of Ripple
The price of XRP/USD dropped -3.68% in the previous day to $0.3229.
The fibonacci retracement level of $0.3604 was again breached by the cryptocurrency on Friday, reaching the daily high of $0.3700. However, a reversal has started in response to Fed Chairman Jerome Powell’s speech, and the support at the 23.6% Fibo retracement of $0.3219 is currently being tested.
Expect losses to increase in direction of the psychological level of $0.3000 and the cycle low at $0, $2875. If the negative pressure persists and a daily close price below this level takes place.
The recent bearish momentum won’t stop unless one is able to retake the $0.3432 38.2 percent Fibo retracement.