Cryptocurrency payments service provider Ripple has called for a thorough investigation into the former U.S. Securities and Exchange Commission (SEC) director, William Hinman, following the public release of his controversial emails and a significant speech he delivered in June 2018. Ripple’s demand for scrutiny arises from the inconsistency between Hinman’s declaration that Bitcoin (BTC) and Ethereum (ETH) were not securities and the subsequent lawsuit filed against Ripple for the alleged sale of unregistered securities.
Ripple’s chief legal officer, Stuart Alderoty, took to Twitter to express the necessity of uncovering the motivations behind Hinman’s remarks and the application of the Howey test. Alderoty contends that Hinman exceeded his authority by creating regulations without proper authorization.
XRP Surges Following Release of Hinman Documents, Ripple Optimistic
The recent release of the highly anticipated Hinman documents has had a significant impact on the price of XRP, the native cryptocurrency for the Ripple network. Following the public disclosure, XRP experienced a remarkable surge of over 7%, reaching $0.5660 on June 13. This surge was met with enthusiasm from investors, as the documents hold crucial relevance to the ongoing legal dispute between Ripple and the SEC.
Ripple CEO Brad Garlinghouse expressed optimism regarding the potential influence of these documents on the lawsuit, stating that they were worth the wait.
The released Hinman documents consist of internal communications within the SEC related to his 2018 speech, where he stated that Ethereum was not a security. Ripple has consistently maintained that these documents are vital in understanding the SEC’s standpoint on cryptocurrencies, particularly Ether and XRP.
XRP Faces Resistance Following Attempted Breakout
Despite XRP’s attempted breakout, the cryptocurrency faced strong opposition from bearish forces. Surging to a two-month high of $0.5660 on June 13, XRP encountered fierce resistance and has since retraced to the $0.4900 level.
According to popular chartist Egrag, XRP is currently in an accumulation phase, with potential for a future rally to a region he calls “Valhalla,” leading to an ultimate price of $50.
Egrag’s analysis emphasizes caution but highlights significant potential for XRP to surge towards the lower end of the “Valhalla region,” representing a price range between $2.8 and $4.6. Such a move would mark Wave 1.
However, Egrag warns of a potential correction to $1 before a larger rally commences, initiating Wave 3. Wave 3 is projected to be 1.618 or even 2.618 times the length of Wave 1, suggesting potential price levels of $12 and $50, respectively. Achieving $50 would require a staggering 9,600% rally for XRP.
As Ripple calls for an investigation into Hinman’s remarks, the cryptocurrency market eagerly awaits further developments in the legal dispute between Ripple and the SEC.
XRP Price Analysis
As mentioned earlier, XRP is on the back foot after getting confronted by stern bearish resistance at the $0.5660 mark. At the time of making this report, the cryptocurrency trades just under the $0.4900 line and is under the influence of significant volatility, as highlighted by the ATR indicator.
Over the coming days, XRP bulls need to cling to the $0.5000 round figure to quell the bearish trend or face a steady decline to the $0.4600 area, meeting the ascending trendline. In this case, a strong rebound is to be expected, making way for a return to the upper $0.5000 area.
However, successfully holding bears off in the near term should result in a retest of the $0.5660 resistance and a possible return to the $0.60 mark.
XRP Statistics Data
Current Price: $0.4900
Market Cap: $24.9B
Circulating Supply: 51.9B
Total Supply: 100B
Market Ranking: #6
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