• SEC v. Ripple case reached a new milestone on Monday as the defendant responded with a letter to the judge.
  • The letter states that the SEC’s motion to strike the company’s lack of fair notice defense is disfavored and not allowed in this Circuit.
  • XRP price anticipates a bounce from the parallel channel’s lower trendline.

Ripple took another legal jab at the U.S. Securities and Exchange Commission (SEC) that could tip the scales in its favor. A positive outcome from the new motion could benefit XRP price in the mid-to-short term scenario.

Ripple strikes back

A letter sent to Analisa Torres, a United States district judge of the Southern District of New York, on Monday addresses that the SEC’s anticipated motion to strike Ripple lacks fair notice. The distributed ledger startup also added that the regulatory agency allowed XRP to flourish without providing legal clarifications.

Ripple stated that such a motion is “meritless” and is “disfavored” in the 2nd U.S. Circuit Court of Appeals in In re von Bulow.

... The SEC’s burden is further insurmountable because a lack of fair notice defense involves factual inquiry that makes it particularly unsuitable to resolution at the pleading stage. No wonder the SEC has cited no case in which a federal court has struck a fair notice defense.

While the meritless claim was just the start, Ripple provided additional information on why SEC's move to strike the defendant's 'lack of fair notice' defense will not be valid.

Although the lawsuit could go either way, XRP price looks primed for an upswing.

XRP price poised to surge

XRP price has seen a massive 33% correction in the last month. The downswing comes as the remittances token created the third higher high since late December 2020. Interestingly, the recent retracement also formed the third swing low since then.

An ascending parallel channel seems to form when the swing highs and lows are connected using trendlines. 

During the 33% pullback, this cryptocurrency came extremely close to breaching this technical formation’s lower boundary. However, the 61.8% Fibonacci retracement level at $0.43 seems to have done an excellent job preventing XRP price from dropping lower.

The presence of “State Trend Support” formed by the Momentum Reversal Indicator (MRI) around $0.38 also provides XRP a foothold to climb higher. Hence, a bounce from the channel’s lower trendline seems more than likely.

If this were to happen, XRP price could surge by 63% to $0.75, where the MRI’s“breakout line” is currently hovering at. A spike in bullish pressure leading to a decisive close above this level would be highly bullish for this altcoin.

The remittance token could then surge up to $1.18, coinciding with the 127.2% Fibonacci retracement level.

XRP/USDT 1-day chart
XRP/USDT 1-day chart

Regardless of the strength of the aforementioned support barriers, a swift breakdown of the $0.36 level due to an unforeseen event could spell disaster for XRP, invalidating the bullish outlook.

The bearish impulse could trigger a 20% sell-off to the 38.2% Fibonacci retracement level at $0.30.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Solana Price Prediction: How high can the X-wave rally?

Solana Price Prediction: How high can the X-wave rally?

Solana price has fallen into a supportive level on the Relative Strength Index on larger time frames. Solana price could rally an additional 80% under conservative macro conditions. Invalidation of the uptrend scenario is a breach of the low at $25.78. 

More Solana news

Avalanche Price Prediction: A sharp decline in the making?

Avalanche Price Prediction: A sharp decline in the making?

Avalanche price shows a potential sell-off underway, and key levels have been identified. Avalanche price could be depicting early evidence of liquidation underway as the technicals show subtle bearish cues. AVAX price has rallied 90% since July 1st, printing a new monthly high.

More Avalanche news

Ethereum Classic Price Prediction: Has the FOMO rally topped?

Ethereum Classic Price Prediction: Has the FOMO rally topped?

Ethereum Classic price may be demonstrating a topping pattern based on technical indicators and fractal wave theory. Ethereum Classic price currently consolidates near a weekly zone as the sellers appear to have faded away on the Volume Profile indicator.

More Ethereum Classic news

Top 3 Price Prediction: No FUD, just charts

Top 3 Price Prediction: No FUD, just charts

Ethereum price has been in high debates as the community of developers and investors are dueling over the future Ethereum Merge implications. The commotion has brought considerable social media presence to the smart contract giant and impressive gains. Since July 1, the Ethereum price has rallied 93%.

More Ethereum news

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis