XRP is getting stronger and stronger, paving the way for new all-time highs. On Tuesday, the price of the cryptocurrency, now in fourth place by market cap, rebounded above $ 1 for the first time since 2018. This remarkable milestone comes in the midst of a market-wide rally. This without forgetting, however, that Ripple - the blockchain startup behind XRP - is blocked by a legal conundrum with the United States Securities and Exchange Commission (SEC).
In a new development in the SEC v. Ripple case, cryptocurrency lawyer Jeremy Hogan noted that the agency will have some explanations to give in court. Hogan indicates that the SEC described Ripple as a "digital currency company" in 2016 filings. The agency will have to explain why it now believes Ripple is a "digital security" company.
A race that hits against the reality of the facts
As previously mentioned, XRP hit $ 1,10 on Tuesday, a level not seen since March 2018. As a result, XRP is now ranked fourth in market value in the cryptocurrency industry. Currently, its market capitalization is $ 44 billion. Cryptocurrency strategist Cantering Clark pointed out that favorable technical patterns are supporting XRP's rally.
“Not for nothing, $ XRP technically took all the necessary steps to be bullish. After the delisting of the exchanges and the cancellation by most of the CTs, this has essentially left the market short both from a positional and a marginal point of view. This price can move much higher ”.
The fundamentals of XRP have not been rosy in the past few months. In December 2020, the SEC filed a lawsuit against Ripple for the sale of unregistered securities in the form of XRP tokens. Most observers suggested that XRP would be banned from this year's bull market due to persistent regulatory uncertainty.
Although the case still drags into court, the price of XRP has risen in recent weeks, having recouped the losses it suffered in December by going from a quotation of 0,60 to 0,17 dollars. Due to the lawsuit filed by the SEC, many cryptocurrency exchanges have removed the coin. Still, it's pretty clear that XRP isn't upset about it.
The SEC needs to explain in court why it changed its tone on XRP
According to attorney Jeremy Hogan, the SEC referred to XRP as a digital currency in 2016 public records. This implies that the agency agreed with FinCen. Now, the SEC will have to explain why it calls the Ripple-promoted token digital security.
Hogan explained that this explanation will be part of the documents Ripple and the SEC will clash with in the court hearing. If Ripple achieves a legal win, XRP's price could rise further and reach new all-time highs.