Should you buy XRP amidst the ongoing lawsuit with the SEC?
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Key point
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Ripple labs battle with SEC lawsuit.
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The company just buyback $200 million worth of Series C shares.
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The company remain optimistic about what 2022 will bring to the table.
It’s no longer a doubt that Ripple labs Inc has long been combatting with a yet to be resolved financial matters with the US Securities and Exchange Commission (SEC).
According to a report from giant crypto research networks, in late December 2020, Ripple was brought to charge with the US Securities and Exchange Commission (SEC). Following the alleged financial case that Ripple raised more than $1.3billion in unregistered earnings as a result of selling XRP securities to institutional investors.
The charge was brought to the limelight when the Securities and Exchange Commission (SEC) declared that the Ripple token should be labelled as a financial security asset and not as a payment system.
Fast forward to the imbalance that was felt in the Ripple market value, several financial institutions back out from accepting the XRP token on their trading platforms. The likes of giant tech companies such as Coinbase and Bitstamp are among the list of US-based industries that delisted the XRP digital currency from their trading assets.
However, with an optimistic look at 2022, it seems the Ripple coin will present a positive effect on its market value. As the recent announcement by the CEO Brad Garlinghouse stated on Wednesday, the San Francisco-based company had just buyback $200 million worth of series C shares, despite the headwinds inflicted by the SEC lawsuit.
Technical levels to watch before buying Ripple
Source – TradingView
XRP Price trade above $0.55 support after plummeting below the $0.805 resistance. The market was found extending sideways price action along with the horizontal Support, while $0.805 and $0.55 represent market near-term resistance and immediate support.
However, if the value of XRP should expand bullish price action above the $0.805 resistance, the overall market sentiment for the asset will resume bullish price movement to the North.
In addition, with the indicator analysis, it seems the Average True Range (ATR) value tends to approach multi-year low while Relative Strength Index (RSI) stays neutral.
In essence, both the volatility ratio alongside the profit and loss ratio express that the current situation of XRP resides in a neutral bias. Hence a surge in volatility could hasten the price action of the asset to gain bullish momentum from the buyers.
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