Altcoins: Charles Hoskinson (Cardano) Comments On Ripple-SEC Case
Aa
Share
- The 45% XRP price rally will likely take a breather before continuing to $1.00.
- Traders should consider booking profits before XRP price confirms a rising wedge pattern.
- A retracement seems imminent, especially with the MACD presenting a sell signal.
XRP price is retracing its steps after rising to $0.5477 over the weekend. Its peers, like Bitcoin (BTC) and Ethereum (ETH), showed strength early Monday but quickly resumed their dominant sluggish movements.
XRP price is teetering at $0.5199 at the time of writing while bulls work to defend a rising trend line support. The cross-border money transfer token's trend correction will continue if a rising wedge pattern is validated.
SEC vs. Ripple lawsuit shouldn't have happened – Cardano's founder Hoskinson
The founder of Cardano, Charles Hoskinson, has over the last few days been on the receiving end of XRP holders for alleging that they (the XRP community) came up with a "grand conspiracy" linking former SEC (Securities and Exchange Commission) and Ethereum officials. However, Hoskinson has reiterated his stance, saying that it did not matter whether there was a conspiracy or not – what is important is how to get out of it.
"I explained how we got here and how we need to get out," Hoskinson said in a podcast.
According to the founder, the lawsuit would not have occurred if there had been regulatory clarity for the crypto industry in the United States. He believes that the SEC's "regulation by enforcement" method hurts the industry and is bad for everyone.
Ripple and the SEC have been battling in court for nearly two years over a case the former filed against the payments company in December 2020. The SEC alleges that Ripple and its top executives sold unregistered XRP tokens, thus breaking the Securities Law.
XRP price could start giving up its gains
XRP price has, in the last several weeks, outperformed its peers – the prevailing bear market conditions notwithstanding. Supporting its grand move from $0.3127 to $0.5477 is an improving investor sentiment attributed to Ripple's recent small wins against the SEC. The judge recently overruled the regulator's motion not to disclose the contents of the now-popular William Hinman (former official of the SEC) speech. Legal experts believe that Ripple is close to winning the case, with the judge likely to dismiss, a situation that could propel XRP price to greater heights.
Meanwhile, XRP price is on the verge of confirming a bear trend correction from a rising wedge pattern, as observed on the four-hour chart below. Rising wedges come into play when an asset's price makes a big swing north but slows down to allow consolidation.
It is worth mentioning that XRP price is trading marginally above the pattern's support. Short sellers will, however, have to wait until the price closes or opens on a four-hour basis below the rising trend line before activating their orders.
XRP/USD four-hour chart
The MACD (Moving Average Convergence Divergence) affirms the incoming bearish grip on XRP price. As the index slides toward the mean line (0.00), sell orders are expected to increase, thus, creating overhead pressure. If the wedge is validated, XRP price will fall 8.24% to $0.4757 before another upswing is considered.
