XRP Gains 30% After Ripple Gets Permission to Demonstrate a “Fair Notice Defense” against the SEC

Ripple's (XRP) price is up nearly 30% in less than a week amid positive sentiment around a court case, in which the US Securities and Exchange Commission (SEC) alleges that Ripple sold XRP as illegal securities.

SEC vs Ripple

Judge Analisa Torres has given Ripple permission to respond to a Securities and Exchange Commission law memo in support of the Motion to Strike fair notification defense, according to court documents.

In addition, Judge Torres also ordered that three documents related to the SEC case against Ripple be unsealed, including the email chain of Ripple CEO Brad Garlinghouse, the filing notice and the email chain of founder Chris Larsen.

Markets received Judge Torres' orders favorably. Soon after hitting the wire, the price of XRP surged nearly 30%, rising from a February 3 low of $0.058 to $0.782 on February 7.

The upside also gained momentum as Jeremy Hogan, partner at law firm Hogan and Hogan, indicated that the Securities and Exchange Commission vs. Ripple may be heading for a ruling.

XRP 'Death Cross' Ahead?

The recent bout of buying also appeared in the XRP market as the coin re-tested the multi-month support trend line, as shown in the chart below.

XRP is now facing a confluence of resistance in the form of the 20-week (green) and 50-week (red) exponential moving averages. At the same time, the two moving averages appear set to form a “death cross” if the 20-week exponential moving average crosses below the 50-week moving average – a classic sell signal.

However, a decisive high-volume close above the mentioned exponential moving averages may limit the selling risk associated with a death cross. Moreover, the extended bullish momentum could push XRP price to retest the descending trendline resistance near $1.26, 50% price increase from the current levels.

Related: Ripple announces $200 million share buyback and is optimistic about 2022

Alexander Mamasedikov, co-founder of crypto wallet service MinePlex, shrugged off the downside warning, asserting that the end of a long-running legal battle between the SEC and Ripple would be bullish for XRP.

“With the expectation that the SEC’s legal battle alleging XRP’s collateral status will be settled this year, current purchases can be seen as a way to stack at a discount for a potential long-term price hike,” he said:

“If the current trend continues, the ambitious support of the XRP community could help propel the cryptocurrency to reach a new monthly high of $0.88 per coin.”

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