It appears that the stalemate between Ripple Labs and the U.S. Securities and Exchange Commission is about to take a turn for the worst. On Friday, the US SEC moved to lodge an amendment on the complaint they filed against Ripple and two of its executives. The amendment on the lawsuit claims that the top executives of Ripple Labs conspired to manipulate the market value of the XRP token.
The US SEC provided details of email exchanges between Ripple CFO and its co-founders Brad Garlinghouse and Chris Larsen, where it was alleged that they talked about adjusting the company’s sell target. Aside from this, the US SEC Accused Garlinghouse of expressing concerns about the XRP being unlisted by multiple major exchanges.
Garlinghouse and Larsen are said to have earned north of hundreds of millions of dollars from selling XRP tokens at various times within five years from 2015 to 2020.
Photo Credits: Pixabay | Ripple XRP crypto coin physical visualization
However, Ripple XRP’s price appears not to have been heavily affected by the latest turn of events and has gained around 2.39% on the same day. Regardless, Ripple XRP is still expecting to end the week at a lower point than where the other top crypto assets will consolidate at the end of the week.
Regardless, these developments could still hurt Ripple’s price. This may manifest as a rejection of the $0.55618 resistance level. A pullback from this level will retest the XRP support at $0.51869 and an expected additional downside target of $0.49884. A further downside of the support trendline will bring the price down to $0.45121.
On the other hand, a breakout from the $0.55618 will bring the XRP price to $0.59067 as the new upswing target. This will quickly be followed by a swing to $0.61766 and $0.67933 based on its expected trendline. The latter requires the price to break past the recent local high it experienced on Valentine’s day to happen.