XRP tokens prior to the lawsuit by the U.S. Securities and Exchange Commission (SEC) has not always been considered a security. This became widely known after regulators released new documents in the Ripple case.
SEC Added Ripple (XRP) to its Securities List April 2018
According to the document, the SEC only added XRP to its list of securities in April 2018. This contradicts the regulator’s original statement that Ripple’s co-founders were involved in illegal securities sales from the start.
Recall that previous U.S. regulators argued in their lawsuit that within seven years, Ripple was able to illegally sell $1.38 billion worth of XRP tokens without following official securities registration procedures.
In the above chart of the SEC lawsuit, it can therefore be seen that the first XRP sale allegedly began in 2013. At the same time, regulators didn’t actually start monitoring Ripple’s activities until 2018.
It is also known that Bitcoin (BTC) and Ether (ETH) were never included in the list of securities. This means that employees in this department could legally trade cryptocurrencies. This can also apply to XRP but until April 2018.
The facts have proven that the critical moment is when the regulator refused to provide information about transactions in the cryptocurrency sector at the request of the court. According to his representative, the request for such information is “undue interference in the private financial affairs of SEC employees”.
XRP Approaches Confluence of Resistance
Ripple price surged roughly 30% between August 31 and September 6 as it pierced the FVG formed on May 19. This ascent indicated strength, but the current state of the market suggests that the trend could reverse, putting XRP price in a tough spot.
On an optimistic note, if the remittance token continues in its direction, investors can expect an 18% upswing until it tags the $1.60 barrier, which is the upper limit of the FVG. Although a move higher is possible, it is unlikely considering the parallel channel’s middle line is acting as a resistance, coinciding with $1.60.
In a bullish case, XRP price might overcome this confluence and tag $1.70.
XRP/USDT Daily Chart. Source: TradingView
If BTC price shows weakness, XRP price could reflect it and continue to head lower. If the correction produces a decisive close below $1.27, it will indicate that many investors are booking profits.
However, a breakdown of the $1.09 support level will invalidate the bullish thesis and could drag XRP price down to $1.01 or $0.84.