XRP has bullish characteristics on a weekly basis, indicating that the long-term bullish structure is still present. The short-term movement is unclear, though. The Ripple v. SEC legal dispute could soon come to a close. So when do you think the XRP lawsuit will end?
It might not be long until the Ripple court case, which has been ongoing since 2020 and will establish a precedent for the cryptocurrency market, is resolved. The US Securities and Exchange Commission (SEC) and Ripple Labs, the corporation that created Ripple, have both filed applications for summary judgment (XRP).
XRP: Is it a security?
The Ripple cryptocurrency network seeks to offer financial institutions quick, inexpensive payments. The XRP native cryptocurrency, which was first introduced in 2013 to raise money for the business, powers it.
However, the SEC filed a lawsuit against Ripple Labs in December 2020, alleging that the company raised $1.3 billion by selling XRP through unregistered security transactions.
Chris Larsen, the chair of Ripple Labs, and Brad Garlinghouse, the CEO, asserted that the sales were legitimate. Their case was founded on the so-called Howey Test, which analyzes whether an asset is a security and was used in a US court case.
Although Ripple does not object to the sale of XRP, the cryptocurrency firm claims that it does not pass the Howey Test. Ripple stated that it did not satisfy the first rule, which calls for an investment contract.
The US District Court for the Southern District of New York received requests for summary judgment on September 17, 2022, from both the SEC and Ripple Labs.
Rally for XRP
Following the submission of summary judgment motions, the price of XRP has been steadily rising. On September 23, 2022, it rocketed to a high of $0.55, up 71% from the $0.32 low from the previous week.
As investors awaited new information, the increase paused a little bit, but recently it resumed following the Hinman documents judgement and amicus discussion. On October 10, 2022, XRP was trading at $0.51, up 15% from the previous week and a remarkable 45% from the previous 30 days.
