This is why pro-XRP lawyer believes the SEC will lose the Ripple lawsuit

Pro-Ripple lawyer, John Deaton, says that he believes the United States Securities and Exchange Commission (SEC) will lose the case against Ripple as it builds up its regulatory clampdown against the cryptocurrency industry

Deaton responded to a tweet by John Reed Stark, a former enforcement official of the SEC, who said:

SEC crypto-exchange crackdown has begun – and the SEC is apparently taking no prisoners.

Reed’s comments come amid four recent SEC events suggesting that cryptocurrency exchanges and platforms, among other digital asset-related entities, that according to Reed will have to change from their current form if they want to continue doing business in the US.

In the aftermath of the recent regulatory clampdown on the crypto sector, market players have often expressed that this could constrain and drive innovation away from the US.

Ripple advocate John Deaton says the SEC will lose, calls the court a “great equalizer”

Deaton opined that the SEC would lose in its fight against the crypto industry, citing instances when the regulator’s arguments came out as being totally meritless. Drawing reference to the SEC versus Ripple lawsuit, Deaton highlights that the federal judge determined that the financial regulator did not have faithful allegiance to the law.

Deaton also drew reference to the  SEC versus LBRY lawsuit, stating that the judge shamed the regulator for lack of clarity. Further, in the SEC’s case against Grayscale, the pro-Ripple attorney said that the court determined that the regulator’s arguments did not make any sense.

Deaton also highlighted the SEC’s case against Voyager, where the ruling judge reprimanded the regulator’s ethics and behavior. As a result, Deaton hails the court as being a “great equalizer."

Ripple price still lacks directional bias

Meanwhile, Ripple price (XRP) still lacks directional bias as the remittance token continues to trade horizontally. At the time of writing, the altcoin is auctioning at $0.51 after losing 2.1% in the last 24 hours. Trading volume for the token is up almost 70%, indicating high activity in the XRP market, presumably because investors are switching their tokens for the ones with less boring price actions. 

If selling pressure increases, Ripple price could continue on the southbound move toward the $0.48 support level, or in the dire case, tag the 50-day Exponential Moving Average (EMA) at $0.46. 

Nevertheless, given the trajectory of the Relative Strength Index, it was likely that the Ripple price could head lower before a possible correction. This comes as the RSI was headed south after calling a sell signal when it crossed below the Stochastic RSI. It appears traders heeded this call given the bearish outlook on the one-day timeframe. 

Similarly, the Awesome Oscillators (AO) were soaked in red to indicate bears were steadily taking back control and Ripple price could continue lower.

XRP/USDT 1-day chart

Conversely, if bullish momentum grows, possibly due to sidelined investors joining the bandwagon, Ripple price could head northwards towards the $0.55 resistance level. Such a move would denote a 10% climb from the current levels.