An enemy of an enemy is a friend. A common phrase, that may just be valid within the ongoing lawsuit between the SEC and fintech firm Ripple and its native token, XRP over the alleged sale of unregistered securities.
Although, Ethereum, directly or indirectly plays a part as well in this triangle. It all started when Ripple filed a Freedom of Information Act request with the SEC, over unfair treatment. Arguably, SEC in the past, had given preference and regulatory green light to ETH which enabled it to surpass XRP token.
In this regard, crypto lawyer John Deaton in a series of tweets expressed his narrative concerning the developing equation between ETH and XRP.
“Whether we like it or not, ironically, XRP and ETH are on the same side in the SEC case,” he opined. Further, according to him, both XRP and ETH could benefit from each other’s victory. ETH surging could have a positive effect on the altcoins market cap as a whole. Similarly,
“…if Ripple wins on fair notice, it guarantees an ETH victory on fair notice. Essential to the fair notice defense is the June 14, 2018 Hinman speech. Ripple’s lawyers have argued that that speech provided Ripple with a reasonable belief that XRP is not a security.”
What’s more, in June 2018, Hinman said in a speech that based on his understanding of the Ethereum network and its decentralized structure, the “offers and sales of Ether were not securities transactions.” Six months later in July, a district judge, Sarah Netburn allowed Ripple to depose the former SEC official who declared in 2018 that ETH was not a security.
XRP too considers itself in the same category despite the difference in opinion. Thus,
“if Ripple can show the XRPL and ecosystem is equal to or more decentralized than Ethereum, Ripple wins (at least from 2018 to present),” Deaton added.
In addition to this, both XRP and ETH had a winning case favoring the respective tokens. In this context, the founder of the Crypto-law.us tweeted:
But ETH has a better case (on fair notice) than XRP related to today’s token.
The truth is that all altcoins start out as a security. In fact, many at the SEC considered #Bitcoin a security between 2010-2015. @HesterPeirce recognized this reality and proposed her Safe Harbor.— John E Deaton (@JohnEDeaton1) November 15, 2021
However, not so long ago, he claimed that several present and former SEC officials have conflicts of interest. He specifically named former SEC Chairman Jay Clayton and the Director of the SEC’s Division of Corporation Finance William Hinman.
According to the lawyer, Clayton’s previous law firm once represented Ethereum’s co-founders. He also alleged that Hinman’s former law firm – Simpson, Thacher & Bartlett – was a board member of the Enterprise Ethereum Alliance.
Deaton also went on to claim that Hinman had collected $15M from Simpson, Thacher & Bartlett, the same year that he was working at the SEC. Further, he mentioned in his tweet,
Who is the enemy?
Some have accused me of making the @Ripple case about #XRP 🆚 #ETH. It’s b/c I wrote the Facts Timeline 🧵 and the #Ether Free Pass Memo.
But the fight is against the SEC. Whether we like it or not, ironically, XRP and ETH are on the same side in the SEC case.— John E Deaton (@JohnEDeaton1) November 15, 2021
Nevertheless, one aspect remains very clear – there is a desperate need for transparent regulations.
XRP Whale Moved $20 Million Coins Away from Exchange
XRP whale moves large funds volume in few hours amid global cryptocurrency market correction.
While the trading activity on the market plunges after a 10% correction, some whales have decided to move their XRP holdings away from various exchanges, which is considered a good signal for holders.
The set of similar transactions
According to the blockchain data, the anonymous wallet has moved approximately $20 million worth of XRP coins from Bitstamp exchange to the unknown wallet. The future of those coins remains undisclosed.
The wallet that received approximately 20 million coins is now holding a total of 51 million XRP. Previously, the same wallet moved to Bitstamp the same amount of coins but divided it into two transactions each worth 10 million coins.
The unknown wallet does seem to move large amounts of funds to the exchange and then withdraw almost the exact same amount of funds back. Some users suggested that the wallets are being used in a mixing scheme, which is considered illegal.
But the more likely outcome is that the wallet is officially tied to the Bitstamp exchange and is being used to either provide liquidity or as an exchange’s cold wallet. But at the same time, all wallets that are owned by exchanges should be labeled.
XRP’s performance during market dip
In comparison with other market performers, XRP followed the general trend by losing 10% of its value while recovering approximately 2% today. The more unfortunate fact for holders is that Ripple broke the two-month trend by dropping below the $1 mark. At press time, XRP is trading at $0.95.
XRP holds key support while indicators point to short-term recovery
- Ripple started a recovery wave above a key support level of $1.024.
- XRP price started an upside correction as indicators suggest a short-term recovery.
- The coin may initiate a fresh downtrend upon a breakout of the $1.024 support level.
XRP is in the process of forming a triple bottom price pattern boding more upside, for the pair priced against the US dollar., XRP price recently found support at the pattern’s base during the formation of the third bottom. Now, Ripple is at a crossroads – a spike in selling pressure may drive a bearish breakout, whilst technical indicators signal a bullish reversal. It all depends on whether or not a critical support level holds.
XRP rejected above the triple bottom at $1
XRP has found support above $1.024 and started a bullish recovery similar to peer altcoins. The XRP price has found footing at the $1.024 level for the third time making it a triple bottom pattern.
If there is increased demand at the current price level it will push the XRP price towards its double top level at $1.108. However, the 20 and 50-period exponential moving averages may act as minor hurdles at $1.076 and $1.108.
The MACD has closed the first histogram above the 0 mark, indicating a bullish reversal. While the RSI is still holding at 44, a crossover above 50 may encourage investors to go long. In that case, the XRP price might spike towards $1.165. Additional gains could lift the price towards the next key hurdles at $1.218 or $1.284
XRP 12-hourly chart – Triple bottom to drive uptrend
If XRP disappoints to start a new spike above the $1.081 level, it could extend losses. Initial support on the downside is near the $1.024 level.
The upward trend that started on September 21 also extends to significant support at the $1.024 mark. Therefore, a break below the $1.024 support level might push the price further down. The next critical support level is near $0.963, below which the price may fall to the $0.888 level.
XRP price consolidates as Ripple bulls eye a 15% run-up
- XRP price is hovering above the $1.01 support level, anticipating a potential retest before an upswing originates.
- A breakdown of this level could lead to a buy opportunity at $0.98 before Ripple rallies to $1.17.
- A daily close below the $0.92 foothold will invalidate the bullish thesis.
XRP price has been on a downtrend for roughly two weeks and shows that a short-term reversal could be near. Market participants need to watch for two immediate support levels that are likely to facilitate this bullish outlook.
XRP price to pull a 180
XRP price has dropped roughly 23% since November 10 to where it currently trades – $1.04. The downswing is likely to retest the $1.01 support floor formed by the November 18 swing low. This will create a triple tap setup, suggesting that a short-term reversal in momentum is likely.
In this scenario, the XRP price could attempt to retest the 50% retracement level at $1.17. This run-up would constitute a 15% ascent from $1.01.
While this scenario makes sense, a breakdown of the $1.01 support floor will suggest that a further downswing is possible. However, this move does not invalidate the bullish thesis but provides investors with a buy opportunity at $0.98. Investors can expect a bounce off this level to propel XRP price to the same level as before at $1.17. This move would constitute a 19% climb.
XRP/USDT 4-hour chart
While things are looking up for the remittance token, a breakdown of the $0.98 support level will create a lower low and invalidate the bullish thesis. This move would also suggest a weakness in buying pressure and set the stage for further losses. In this situation, market participants can expect XRP price to drop by about 6% to $0.92.