SEC has officially charged Ripple with unregistered security offerings, referring to the launching and the issuance of Ripple’s token, XRP. XRP has long been among the top trading cryptocurrencies by market cap, and it still is, while Ripple company has partnerships and agreements with numerous banks and financial institutions that use RippleNet and the company’s original products. Still, despite what seems to be a prominent crypto and blockchain company, Ripple has another lawsuit filed against the company by investors who claim that the company had intentions ”to deceive and defraud”. What will happen to the XRP price?
XRP Price on a Decline as SEC Rules XRP as Security
While XRP is ruled as security by the Securities Exchange and Commission, the company is facing another lawsuit filed by investors on the alleged fraudulent activities regarding the XRP ICO, SEC claims that Brad Garlinghouse and Chris Larsen personally profited by selling XRP that they owned during the market gains at times when XRP was experiencing uprising trends. SEC alleges that the two probably earned up to 600 million dollars by selling their XRP holdings. SEC also charges Ripple for selling the XRP in the initial sale for 1.38 billion dollars without previously submitting required documentation. Some exchanges, such as Bitstamp, for example, and removing XRP from their listings and discontinuing trading operations for XRP. The case is also affecting the price of XRP.
XRP Price Analysis: BUY or SELL XRP?
Technical analysis for XRP provided by TradingView analysts indicates that XRP is a SELL when it comes to short-term trading and swing trading in intervals of 15 minutes. Moreover, out of 26 analysts, 11 consider XRP to be a SELL, 10 are NEUTRAL and 5 recommend Ripple’s XRP as a BUY. When it comes to long-term trading for a period of the next 30 days, XRP is recommended as a STRONG SELL, which indicates that the lawsuit is affecting the price of XRP and the overall expectations of crypto analysts.
Image credits: Cover photo taken from DepositPhotos
