Should you buy XRP amidst the ongoing lawsuit with the SEC?

Key Point

  • Ripple Labs fights SEC date.

  • The company has repurchased $200 million worth of Series C shares.

  • The company remains optimism about what 2022 will bring to the table.

There is no doubt that Ripple labs Inc has been fighting unresolved financial issues with the US Securities and Exchange Commission (SEC) for a long time.

In late December 2020, Ripple became head of the US Securities and Exchange Commission (SEC), according to a report from a huge crypto research network. Following a financial case allegation that Ripple sold XRP securities to institutional investors and resulted in unregistered earnings of over $ 1.3 billion.

The claim came into the limelight when the Securities and Exchange Commission (SEC) declared that Ripple tokens needed to be labeled as a financial security asset rather than a payment system.

Fast-forwarding to the imbalance felt in Ripple’s market capitalization, some financial institutions have stopped accepting XRP tokens on their trading platforms. Giant tech companies such as Coinbase and Bitstamp are on the list of US-based industries that have excluded XRP digital currencies from their trading assets.

However, looking at optimism about 2022, Ripple Coin seems to have a positive effect on its market value. As a recent announcement by CEO Brad Garlinghouse said Wednesday, the San Francisco-based company had just repurchased $200 million worth of Series C shares despite headwinds from the SEC dates.

Technical level to be aware of before purchasing Ripple

Source – TradingView

The XRP price will trade below the $0.805 resistance and then above the $0.55 support. The market was found to be expanding sideways pricing behavior with horizontal support, but $0.805 and $0.55 represent short-term resistance and immediate support for the market.

However, if the value of XRP needs to extend bullish pricing behavior beyond the $0.805 resistance, overall market sentiment towards assets will resume bullish price movements to the north.

In addition, index analysis shows that the Relative Strength Index (RSI) remains neutral, while the mean true range (ATR) values ​​tend to approach their lowest levels in years.

In essence, both the volatility ratio and the profit and loss ratio represent a neutral bias in the current situation of XRP. Therefore, a surge in volatility can accelerate asset pricing to gain bullish momentum from buyers.

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