XRP On Thin Ice: SEC Case Heats Up, Sends Shockwaves Through The Market
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The XRP market is on a downward spiral as factors like crucial network fundamentals, global crypto macroeconomics, and price action deters bulls from going parabolic. After rallying from $0.33 to around $0.44 in January, the XRP price has since invalidated the rising trend after dipping toward $0.37 earlier this month. Nonetheless, the possibility of a breakout cannot be ruled out entirely, as the digital asset could burst from the multi-year consolidation.
As the XRP case nears the end, lawyer John E Deaton – the founder of crypto-laws.us – has recently indicated that the SEC could get some victory in that Ripple sold unregistered securities between 2013-2107. As a result, Deaton thinks the possibilities of a jury trial are even higher than before, contrary to many people’s expectations.
“If true (no injunction), there won’t be an injunction, no disgorgement, but a fine. But, as you know, I think the chances of a jury trial are higher than most people believe,” Deaton noted.
Moreover, the lawyer has argued that Ripple may have violated some United securities laws through the XRP sales.
XRP Price Action & Market Analysis
While the XRP price has not outperformed the 2017/2018 bull market, the digital asset has been consolidating similarly to the pre-2016 market. As a result, the possibilities of breaking out of the multi-year wedge formation on the weekly timeframe are solid. Nonetheless, a pseudonymous crypto trader on Twitter @Leerzeit has outlined a negative sentiment on XRP’s market outlook.
According to @Leerzeit, XRP price closed the 12th red candle in a row against the total of crypto, a phenomenon not observed since early 2015.
As a result, XRP traders are now worried the XRP global market share is declining while Ripple continues to pour in more units from the escrow account to the secondary market.
