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Ripple’s Chief Legal Officer Says SEC’s Game Is Over, Citing Shady Behavior and Concealment of Information – Is a Settlement Imminent?

Digital Art XRP Logo Symbol. Ripple Cryptocurrency Futuristic 3D Illustration.

  • Ripple’s Chief Legal Officer, Stuart Alderoty, criticizes the SEC for alleged ‘shady behavior’ in court, including withholding information and facing rebukes from internal auditors.
  • XRP’s market performance shows a stalled price increase after hitting $0.75, with future trends hinging on key support levels and RSI indicators.

SEC’s Tactics in Ripple Case: A Critical Overview

Ripple Labs has been embroiled in a contentious legal battle with the U.S. Securities and Exchange Commission (SEC) since December 2020. The lawsuit, a pivotal moment in the cryptocurrency industry, has seen various twists and turns. Ripple’s Chief Legal Officer, Stuart Alderoty, has been vocal in criticizing the SEC’s approach. In a potent analogy, Alderoty compares SEC Chair Gary Gensler to Colonel Jessup from ‘A Few Good Men,’ suggesting a sense of insularity and fault-denial within the regulatory body​​.

Alderoty’s allegations against the SEC are substantial. He accuses the Commission of “shady behavior,” specifically hiding information about meetings with a convicted felon and being rebuked by the government’s internal auditor. These claims point to a broader narrative of opacity and questionable practices within the SEC, particularly concerning its dealings with major cryptocurrency entities like Ripple​​.

The legal proceedings have witnessed several rulings unfavorable to the SEC. A notable example is the court’s directive for the SEC to disclose internal communications regarding Bitcoin, Ether, and XRP. This decision is significant as it could reveal the SEC’s internal perspective on cryptocurrencies and their regulatory status. The agency also faces criticism from prominent figures in the crypto space, like Coinbase CEO Brian Armstrong, underscoring the industry’s growing skepticism towards the SEC’s handling of cryptocurrency regulation​​.

XRP’s Price Trajectory Amid Legal Turbulence

Turning to XRP’s market performance, the cryptocurrency’s price trajectory has been a rollercoaster ride, particularly in the context of the ongoing lawsuit. After reaching a high of $0.75, XRP experienced a downturn, nearly retreating to the $0.55 horizontal support area. This price movement followed a breakout from the $0.55 resistance, signaling market uncertainty​​.

The weekly Relative Strength Index (RSI) for XRP remains bullish, but daily readings present a more mixed scenario. The RSI, a key momentum indicator, is hovering around 50, a critical threshold that could dictate future price movements. If the RSI maintains above 50 alongside a price bounce at the $0.60 level, XRP could see a significant uptick. Conversely, a fall below these levels might lead to further declines, potentially testing the $0.50 support area​.

Ripple XRP Price Prediction: A Balanced Outlook

Technical analysis suggests a balanced outlook for XRP. The currency broke out from a descending resistance trend line in late October but was met with resistance at the $0.74 level.

This resistance level is crucial as it represents the 0.618 Fibonacci retracement level, a significant marker in technical analysis. The future trajectory of XRP will likely depend on its ability to maintain support levels and the direction of the RSI indicator​.

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