XRP Lawsuit: Next SEC v Ripple Court Day On Friday Approaches

May 12, 2022 4:27 pm

The SEC battle with Ripple is set to resume again as the next court date approaches soon on Friday while the overall crypto market continues in decline.

So far, XRP price action has indicated that it is price at sub $0.40 while making several intraday recoveries in the meantime.

As a result, this may present another buying opportunity for investors who are looking to get in before the results of the next court decision comes out.

On Friday, Ripple will essentially be responding to the SEC brief that claimed that the Hinman documents were protected by the attorney-client privelege.

Ripple’s response is highly anticipated as this was the first time that Ripple had requested an extension in the lawsuit in order to respond to the SEC.

As a result, investors are expecting a positive turn of events from Ripple’s lawyers.

FXEmpire reports:

On Friday, Ripple defendants will respond to the SEC’s brief claiming the Hinman documents are protected by the attorney-client privilege.

The Securities and Exchange Commission is then due to respond to Ripple Defendants’ comments on May 18.

For Ripple Lab, a motion against the SEC could wrap up a case that has continued to draw interest since 2020.

Hinman, former SEC Director of the Division of Corporation Finance, is a central figure in the SEC v Ripple case.

By way of background, Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities in a 2018 speech. The SEC is looking to shield documents and emails relating to internal discussions and Hinman’s famous speech.

There has also been new attention to Hinman’s conflict of interest which was uncovered by the organization Empower Oversight.

The organization had shared emails that showed the SEC Ethics Office warning Hinman of his financial interest in Simpson Thacher.

Despite the warning, Hinman had continued to meet with the law firm and also made a speech that caused a spike in Ether prices back in 2018.

As a result of this revelation, it is expected that this will be brought up to the court which will likely strengthen Ripple’s position once again.

FXEmpire.com reports:

XRP will need to move through the $0.4344 pivot to target the First Major Resistance Level at $0.5032. XRP would need broader crypto market support to breakout from $0.45.

In the event of an extended rally, XRP should test the Second Major Resistance Level at $0.5910 and resistance at $0.60. The Third Major Resistance Level sits at $0.7479.

Failure to move through the pivot would bring the First Major Support Level at $0.3467 into play.

Barring another extended sell-off throughout the day, XRP should avoid sub-$0.30. The Second Major Support Level sits at $0.2778.

The court dates on Friday and May 18 will likely have a large influence on the short-term direction that XRP takes.

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