Ripple vs. SEC Will be Different from Kik’s Defeat, Says Hogan

Jeremy Hogan, a well-known lawyer among the XRP community members, posted a video talking about the fulcrum in the United States Securities and Exchange Commission (US SEC) lawsuit against Ripple and two of its executives. 

Careful to not give legal and financial advice, he mentioned how Ripple “dodged a bullet”.   He also discussed how complex the judges’ roles would be in this litigation because of the very broad area of the law that it covers. 

The case between the US SEC vs. Kik Interactive illustrates this point clearly. In late-October 2020, New York Judge Alvin Hellerstein ruled Kik’s cryptocurrency was a security and that the SEC has won the case. 

Caption: Ripple vs. SEC judge more interested and understand it better

Hogan expressed his relief about the fact that Hellerstein is not the judge for Ripple’s legal battle. The said judge is in his 80s and, according to court transcripts, is not familiar with what blockchain-based tokens are, nor does he know what a distributed ledger is. 

Hogan was very keen on the US District Jude Analisa Torres’ choice of words during Ripples pretrial conference. He noticed that the 61-year-old Harvard graduate was careful with her terminologies, noting that she used both the SEC’s preferred term of “digital asset” and Ripple’s “cryptocurrency. This may mean that she understands the difference and understands what the case is all about. 

As Hogan previously mentioned, this was not the case in the lawsuit between Kik’s and the SEC. Hellerstein reportedly asked the SEC lawyers regarding previous court decisions as to the basis for his ruling. However, the SEC has spent the time to work on from 2017 to 2019 to “put together this case authority”. 

According to Hogan, this meant that when the judge asked for prior judicial decisions, the SEC was prepared with six or seven cases that favour their case. However, with Analisa Torres, Hogan has a feeling because she seems more interested and curious about the case itself.

Ripple XRP Is Poised for Volatility as it Prepares for a Surge

The price of the Ripple XRP on the charts is showing a bullish pattern that will bring it over the $1.00 mark despite the major legal troubles Ripple is facing against the US Securities and Exchange Commission.

As of recently, the cryptocurrency community is closely watching out for developments on the lawsuit filed by the US SEC against Ripple and two of its top executives. This legal battle puts the XRP at risk of being labeled as a security. On the other hand, stablecoin is thought to have a good chance of profiting for its investors and speculators by one of the most well-known technical analysts in the industry.

Caption: Ripple XRP is ready for an enormous upswing, says analyst

40-year-old trading veteran Peter Brandt has recently talked about the XRP, and the inverse pattern “head and shoulders” is presented on the 12-hour chart. The cryptocurrency is also creating the right space and preparing to form a bullish pattern for the coin. However, the chances of this happening for the coin is arguable at the moment. 

Nonetheless, the analyst stated that he prefers not to trade securities of OTC and emphasized that the XRP might be a viable choice if he ever decides to invest in the coin. He notes a bullish desire that may enable the cryptocurrency to conclude past the pattern’s neckline at $0.66 and may result in a 74% upswing for the XRP.

Additionally, the token will surge to a new high for the year at approximately $1.15 based on the inverse “head and shoulders” pattern. It is an optimistic aim determined by measuring the distance from the neckline to the head that may push the price upwards from the breakout point. 

However, if the XRP fails to fulfill this bullish desire, the crypto may fall significantly and conclude at $0.20 after an enormous correction.

Ripple CFO Responds to MoneyGram Halting Partnership with XRP

MoneyGram, a money-transfer company, announced that it would suspend its partnership with Ripple and XRP. This comes after the US Securities and Exchange Commission sued Ripple for violating investor protection laws. 

MoneyGram previously used XRP in its back office to fund cross-country transfers which reduced the risks that come with foreign exchanges by offering real-time settlements through Ripple’s technology. Notably, the partnership was expected to reduce working capital needs and generate revenue and cash flow for Ripple and MoneyGram. However, after the SEC sued Ripple, the company said it faced legal and reputational risks by using the platform as well as logistic challenges. 

Caption: MoneyGram will no longer use XRP for cross-border transfers

This happened well before the partnership between the companies was due to expire. The loss of the fees and the decline in investment revenue because of lower interest rates are expected to weigh on its first-quarter report. However, according to Ripple’s Chief Financial Officer Larry Angelilli, MoneyGram is still working with Ripple to find possible alternatives.

The Ripple CFO said that if a resolution to the case comes, especially of Ripple prevails, he expects that there won’t be any problems. However, he notes that this may take some time before it happens. 

Ripple also said in a statement that it wants to find a middle path and move forward with MoneyGram. The company added that the confidence lawsuit would provide more clarity on the SEC’s treatment of blockchains and digital assets in the US.

The options for MoneyGram are unclear as there are no comparable alternatives to facilitate cross-border transfers in real-time for the company. Regardless, if XRP is filled as a security, MoneyGram said it would halt trades using Ripple XRP completely. 

MoneyGram’s stocks dove by 28% to $7.77 after the company released its quarterly results on Monday and fell to $6.67 after closing on Friday. 

Ripple XRP at Risk of Huge Drop, Bulls Have Plenty of Work to Do

XRP had a wild month. It experienced a ton of volatility because of the sudden price pumps orchestrated by the WallStreetBets subreddit and the developments with the lawsuit filed by the United States Securities Exchange Commission (US SEC). 

The digital asset has been going up and down in the past few days and still remains quite volatile. However, the number of whales are at a downtrend even at the lower points of the coin’s price, which may indicate that larger investors are not interested in the coin at this time.

Caption: XRP is at risk as bulls attempt to save it

Moreover, on the 3-day chart for XRP, the TD sequential indicator presented a sell signal last week as the coin goes through a significant bearish run continuing down to $0.45. The last sell signal for the coin was seen in November 2020, and its price dropped by more than 70% within the month. 

The number of whales who hold over 10 million coins has decreased in the last month. The number of whales did not increase even as the coin reaches new lows for the month of February. Regardless, the bulls still look at a 50% mean revision of the daily candle.

The XRP bulls are stepping from the post-Reverse Bank induced lows as the pound continues to be the best performing G7 currency in 2021. The XRP’s daily chart’s bearish impulse has also peaked, and the bulls are correcting this move.

The chart shows that there is a confluence of the old support structure for the coin that meets the 50% mean reversion of the impulse, which is the current target.

Regardless, the bulls have plenty of work ahead of them, and a slow and steady upwards grind will be necessary to turn the charts bullish again before the coin can recover its previous market capitalization.

XRP Price in Danger of a Major Drop if Support Levels Fail to Hold

Ripple XRP’s price is on the verge of a significant breakdown if it continues to fail its hold of crucial support levels. A key indicator to sell has also appeared on the 3-day chart of the crypto token. Moreover, the number of whales transacting using XRP is on the downtrend, which may mean that they are not interested in the digital asset at this time. 

The past wild months have been wild for the XRP token. It has experienced tons of volatility after the lawsuit filed against Ripple and two of its top executive on December 2020 by the US Securities and Exchange Commission. This was added to by the initial pump orchestrated by the subreddit named WallStreetBets at the start of February this year. The digital asset’s volatility remains and may be gearing up to a significant drop.

Caption: Ripple XRP’s price is in danger of a 50% drop.

On the 3-day chart of XRP, the TD Sequential Indicator showed a sell signal on February 21, and the bearish effects of the signal have continued since. The crypto coin is now trading at only $0.45. The last sell signal for the token was seen in November 2020, and its price dropped by more than 79% in just 30 days. 

Regardless, the 26-EMA at $0.415 is proving to be a robust support level for the token. However, if XRP bulls fail to hold on to this key level, the price of Ripple XRP will swiftly fall towards $0.218. 

It should be noted that the number of XRP whales who hold over 10 million or more coins has decreased in the past three weeks, even as prices fall. This indicates that the large investors are not interested in the token at this time, even if the prices are lower.

On the other hand, if XRP bulls can invalidate the sell signal and push the price past the last high of $0.65, a rebound from the 26-EMA resistance level could drive the coin to an upswing towards $0.75.

XRP Ledger 1.7 Version Released, Will Improve Efficiency and Security

The newest version of the XRP ledger was released on February 25, 2021. Version 1.7.0 of the reference implementation for the software supporting the XRP Ledger (XRPL) was released through key contributions from RippleX. It aims to improve the XRP Ledger’s decentralization, efficiency, and security. 

As part of its continuing commitment to the XRP Ledger, RippleX is still working on updating and improving the use of available systems and resources to make its software work efficiently on almost any server configuration. This update builds on its previously contributed updates and improvements that focus on a new set of changes that greatly reduce its memory usage by over 50%. 

Some of these improvements came directly from the CRO of Ripple, David Schwartz. He is the one who implemented the change that eliminated a layer of caching that further improved the platform’s memory and execution time. 

Caption: RippleX announced the release of the XRPL ver. 1.7.0 update 

Other improvements included in the update are improved validation and proposal routing, which will benefit single server operators and large cluster network, operators. Validator manifest optimization is also included. These are propagated widely and more efficiently throughout the peer network. This update effectively improved the system and added greater visibility into the overall environment for its operators. 

The update also introduced the forward ledger replay. This is a key improvement to the XRPL that will enhance the security and greatly reduce the bandwidth required by allowing servers to retain synchronization throughout the network easier. However, this is an optional feature that can only be accessed and initiated through the XRPL options. 

The release of the update is another step towards the evolution of the XRPL, and each of the features added is aimed to directly help the XRPL’s network operators and improve its capabilities exponentially. The XRP Ledger foundation will also play an active role in maintaining the XRPL infrastructure. 

MoneyGram Announces the Suspension of its Services for Ripple XRP

The global money transfer company MoneyGram recently announced that they are suspending trading services for Ripple XRP on their exchange platform. This may be because of the ongoing litigation against Ripple from the United States Securities and Exchange Commission (US SEC) as the reason for cutting off their partnership. 

The relationship between the global money transfer company MoneyGram and blockchain payments company Ripple has changed, and it’s because obvious from their actions. The main reason that MoneyGram cited the non-beneficial factor from Ripple market development fees for the first quarter this year.

Caption: MoneyGram announced it wouldn’t benefit from Ripple’s market development fees.

MoneyGram’s quarterly outlook gave the projection that it probably won’t benefit from its partnership with Ripple. However, it should be noted that MoneyGram had $12 million in net expense benefits from Ripple in the first three months of 2020. 

MoneyGram suspended the trading on the Ripple platform because of the ongoing litigation with the US SEC filed against the blockchain payments company. It also cited the uncertainty about the process as another factor that led to the decision.

The two companies started their partnership three years ago, where MoneyGram started using XRP for its payment system. Both companies also entered into this partnership agreement to enable foreign exchange settlements and cross-border payments for their respective digital assets. 

Ripple invested $50 million in November 2019 for a 10% stake in the global money transfer company. However, Ripple sold $15 million of its MoneyGram stocks at the end of 2020.

Around the same time, the US SEC filed a lawsuit against Ripple and two of its top executives, CEO Brad Garlinghouse and Co-founder Christian Larsen. This is the main reason why MoneyGram chose to distance itself from Ripple. Since the announcement from the US SEC’s filing of the legal action against Ripple, MoneyGram stopped using Ripple’s on-demand liquidity and RippleNet’s services for processing direct transfers of consumer funds.

XRP On-chain Metrics Encourages Investors to Buy Before $1 Upswing

Ripple XRP is experiencing an uptrend following the recent steep dive to $0.35. The loss XRP suffered at the time spread across different levels in the market. The drop broke through several support levels, including the $0.55 and $0.40 markers. Regardless the cross-border token bulls and XRP bulls managed to regain control and are ready for an upswing to $1.00.

The recent drop to $0.35 may have been a blessing in disguise for the token. This allowed more investors to join the market and buy the crypto at a much lower price. The token recovered from the dip and now trades at $0.48. At the same time, XRP bulls are trying to get over the 50-SMA (Simple Moving Average) on the token’s 4-hour chart.

Caption: Ripple XRP is gearing up to a reach $1.00 mark

Once XRP starts trading above the critical levels, it will likely pave the way for the token to gain value above the ascending parallel channel’s middle boundary. Another breakthrough at the $0.55 level is expected to trigger massive buying of the token as it rallies towards the $1.00 level. 

As of writing, the path with the least resistance is upwards. Especially with the RSI (Relative Strength Index) on the 4-hour chart, bouncing off the oversold region, on the chart, and going to the midline, the XRP’s prospects are great. 

Santiment’s MVRV chain-model revealed the Ripple is in the buy zone. This metric measures the profit and loss average and its aggregate activities in the last 30 days and compare its price since the token moved last.

A low MVRV ratio means that investments on the token haven’t moved or are at a loss, which means that selling is unlikely. On the other hand, high MVRV means that traders are more likely to sell. 

However, if the immediate resistance at the 50-SMA on the 4-hour chart remains untouched, the XRP may fail to materialize the expected upswing. And this may hinder the growth of the token and add to the selling pressure.  

MoneyGram Announces Withdrawal of Partnership with Ripple In 2021

MoneyGram announced that it has suspended using Ripple Labs’ platform because of the lawsuit the U.S. Securities and Exchange Commission filed against the company. The announcement came as a part of MoneyGram’s earnings report for the last quarter and full year 2020. 

MoneyGram reported total revenue of $1.217 billion for the year, with $1.105 billion in revenue from money transfers. However, MoneyGram also wrote that it does not plan to benefit from Ripple market development fees for the first quarter of 2021. 

It should be noted that the earning reports from MoneyGram for 2010 and 2020 included development fees from Ripple valued at $11.3 million and $50.2 million, respectively. These earnings were partially offset by trading and related transaction expenses of $0.4 million and $11.9 million.

Caption: Photo Credits: Ripple and MoneyGram partnership canceled for first quarter of 2021

MoneyGram and Ripple had a commercial agreement since mid-2019 that allows Ripple’s foreign exchange blockchain trading platform to purchase or sell four currencies. The platform utilizes Ripple’s XRP as its main currency, and Ripple subsidizes MoneyGram’s use.

MoneyGram cited the US SEC lawsuit as the main reason for its suspension of Ripple’s Platform use. This lawsuit alleges that Ripple Labs and two of its top executives, CEO Brad Garlinghouse and co-founder Christian Larsen, knowingly conducted over $1.3 billion of unregistered securities offering of their cryptocurrency, XRP.

The US SEC alleges that most of the XRP’s onboarding onto ODL wasn’t market-driven or organic and that Ripple subsidized them. The regulator also mentioned a money transmitter without naming it. The US SEC detailed that the money transmitter served its principal purpose that allowed Ripple to tout ODL as a cheaper alternative in exchange for significant financial compensations.

The US SEC added that the unnamed money transmitter became a conduit for Ripple’s unregistered XRP sales into the market. It also said that this enabled Ripple to receive added benefits that let it tout its organic XRP “use” and trading volumes for the token.

Ripple XRP Lawsuit Sees Developments Due to Recent SEC Amendments

The lawsuit the U.S. Securities and Exchange Commission filed against Ripple Labs, and two of its top executives have been recently amended by the commission. On the other hand, XRP Ripple said they now have the upper hand in this legal dispute. 

XRP is facing a securities lawsuit, and the court case is continuously developing due to the recently amended statements that came in from SEC. Regardless, Ripple is pushing this case further and is more than ready to take them on, especially since the recent amendments on the complaint against the crypto token.

Caption: Ripple vs. US SEC lawsuit sees responses from both sides

In December 2020, the United States Securities & Exchange Commission (US SEC) filed their initial charges against Ripple. The commission alleged that the XRP token was sold as an unregistered securities offering. On February 18, 2021, The US SEC filed its amended complaint, which has additional allegations against Ripple Labs. This new complaint now included many new details and allegations against the company and two of its top executives. 

Jeremy Hogan, Ripple Attorney, has delineated a few of the amended charges made in the complaint. He observed that the DEC is required to show that the XRP is a security and that the Ripple executives were aware that it was wrong to sell-off the assets but still went on with the said sales regardless of the lapses.

SEC added 110 paragraphs that accuse Chris Larson and Brad Garlinghouse. These two are the Ripple Labs executives who played major roles in the allegedly improper approval and negotiations of institutional sales and other offers of Ripple’s crypto token to their institutional investors.

However, legal counsel to Ripple, Stuart Alderoty, said that the SEC’s changes on their charges against Ripple only make little effects in legal terms. 

As a result of the complaint’s fresh amendments, MoneyGram has withdrawn their partnership with Ripple and XRP. This also includes the withdrawal of their $50 million investment.