Two factors might contribute to the turnaround for XRP, the native token of Ripple. One is the blatant call-out by a non-profit watchdog, Empower Oversight, claiming that the SEC is biased in its lawsuit against Ripple.
The Security Exchange Commission and Ripple are both locked into a bitter lawsuit over asset identification. The latter’s victory could begin a significant bull run for the digital asset.
Investors And Proponents Expect XRP Rally
But first, Ripple investors think the alternate coin will come out as winners in the lawsuit against the Securities & Exchange commission. Empower Oversight had filed a lawsuit against the SEC where it fingered the bias outlook of the regulators versus Ripple.
The fresh lawsuit by the non-governmental organization had caused intense deliberation by experts and investors. Ripple had earlier announced a deliberative Process Privilege (DPP). The document describes how the digital asset is committed to protect information reflecting the regulation’s position and standard where third parties are concerned.
In addition, the document is an agreement that protects information such as analysis, recommendations and suggestions from third parties before the decisions are implemented.
Faulty SEC Argument Likely A hoodwink
Ripple had also shown the error in the argument of the regulators questioning the position of the financial agency concerning shared information to third parties. SEC are focused on determining the decisions that are privileged for investors.
The agency is asking for clarity towards the specific decisions, especially how the decision-making process should be structured to determine information privilege. Several proponents are delighted in the new filing from Ripple about DPP. They believe that the response will add to bullish sentiments for XRP. Gregg Kidd from Global iD says “SEC is more on trial than Ripple.”
Apart from the bullish outlook the new filing has added to Ripple, the report from Oversight is further stoking sentiments. Supporters are behind the non-governmental organization, believing that it will succeed with its lawsuit against the regulators.
Once it succeeds, the previous lawsuit filed against XRP by the regulators becomes void. Victory for Ripple is very significant not only for the agency, but for fueling hope for other cryptocurrencies amid the regulators’ ever-tightening clamp down on digital currencies.
Advocates think SEC is doing eye service because Ethereum, the largest alternate coin, had never drawn their eyes for a potential investigation. However, XRP, a smaller altcoin compared to Ethereum, is being victimized by the regulators.
One reason for the intense victimization had been the declaration of XRP as a security or investment asset. Last week, Ripple gained significantly, resulting in 13% upswing. Analyst over the uptrend is only beginning. They think Ripple is entering a bullish season resulting from the positive outcome in the lawsuit.
Other analysts think the current price trend of Ripple is almost similar to the double bottom pattern that happened at the tail end of July, 2021. Presently, Ripple has tested and broke $0.83 resistance. It trades at $0.89. Analysts think Ripple price will rally once it rides on the current positive sentiments.