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- ‘Death Cross’ suggests that there is more pain in store for XRP
- Judge orders former SEC director of corporation finance Bill Hinman to appear before the court
- The judge feels the case touches upon significant policy decisions about the market
Ripple, the company which runs XRP cryptocurrency, is in trouble. Ripple is embroiled in a legal tussle, and a judge ruled that a former regulatory official can be questioned over the sale of $1.3 billion worth of XRP.
On the price front also XRP is in for some serious trouble. Charts reveal that the XRP fifty-day moving average is about to fall below the 200 days moving average. It will create a pattern known as the ‘Death Cross.’ It suggests that there is more pain in store for XRP.
However, charts show the XRP price’s 50-day moving average is about to fall below the 200-day moving average—a pattern known as the “death cross”—suggesting further XRP price pain could be on the way. The price of Ripple XRP has fallen in recent months, and it has crashed along with other assets.
Former SEC director of corporation finance Bill Hinman to be cross-examined
Ripple is already facing a suit by the Securities and Exchange Commission (SEC) in New York because XRP must be treated as security similar to company stock and was never registered as such. The Securities and Exchange Commission (SEC) has also named cofounder Christian Larsen and its chief executive Bradley Garlinghouse in the suit.
On Thursday, the New York District Court Judge Sarah Netburn said that former SEC director of corporation finance Bill Hinman can be questioned by Ripple—whose court appearance is now set for July 27.
SEC enforcement case is not an ordinary case
Netburn was talking to Bloomberg, and she said that the SEC enforcement case is not an ordinary case and added that Hinman’s deposition will not op[en a pandora’s box on government officials who had spoken on laws, regulations, or policies as the SEC had claimed when it sought to block Hinman’s testimony. Sarah added that the case touches upon significant policy decisions about the market. It has also garnered many controversies, and the public interest in the case is very high.
Hinman is known to be skeptical about the primary cryptocurrency Ethereum, which he deems is not secure. Hinman had given a speech to this effect in 2018, and Ripple will try to draw a similarity between XRP and ethereum’s ether token while suggesting that Hinman’s former law firm’s membership of the Enterprise Ethereum Alliance created a conflict of interest.
Anderson Kill partner Stephen Palley expressed his delight by saying that one doesn’t win a case by getting a judge to order a deposition. That is a small battle. It is not a war.
Another U.K.-based digital asset broker Alexandra Clark called the ruling another small victory in its ongoing battle with the SEC.
The XRP price has tanked by 70% ever since it soared to $2 in April. It is a classic case of cryptocurrency boom and bust. Despite the crash, Ripple’s XRP is still up around 160% since the beginning of the year.The downward trading pattern that will bring the first XRP death cross in the coming months indicates a bear market signal, although some consider it a lagging indicator.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
