Ripple Labs, Inc, owner of the cryptocurrency XRP and the United States Securities and Exchange Commission (SEC), ruled out reaching a previous agreement before the start of the trial that is scheduled for February 22, 2021.
On December 22, 2020, the SEC filed legal action against the company Ripple and its co-founders, Cristian Larsen and Bradley Garlinghouse.
They are accused of selling XRP to finance company activities. The SEC considers that asset to be unregistered security, while Ripple, for its part, maintains that it is a virtual currency.
The SEC complaint filed against Ripple, on December 22, 2020, initially had a negative impact on XRP. It dropped from $0.466 to $0.195.
On a technical level, on the 4H chart, we notice that the Ripple cryptocurrency is trading above the 21 SMA and above the 200-day EMA, showing bullish strength.
We can also see the formation of a technical pattern of a bullish wedge, which could be a sign of a bullish move in the short term.
The eagle indicator is on neutral ground as Ripple is now in the eye of the SEC. It is likely to continue to consolidating at this level until after February 22.
Our recommendation is to buy above the 21 SMA with targets at 0.6335
The material has been provided by InstaForex Company - www.instaforex.com