XRP News: Memo Twist Sheds Light on Internal SEC Discussions

Key Insights:

• Confidential memo indicates SEC uncertainty surrounding XRP security classification.
• XRP trades within symmetrical triangle, support at $0.42; resistance at $0.61.
• Bitcoin trades within narrow range, support at $25,000; resistance at $28,000.
• Ethereum remains stuck below 50 SMA, support at $1,475; resistance at $1,757.

Bitcoin, Ethereum and XRP Forecast Video for 29.08.23 by Tim Smith

An undisclosed memo from the U.S. Securities and Exchange Commission (SEC) has emerged, shedding new light on the ongoing legal dispute involving blockchain payments giant Ripple Labs, and casting doubts on the agency’s initial position regarding the classification of the XRP token (XRP). In an intriguing twist, the memo’s disclosure surfaced during a recent X (Twitter) discussion.

Legal expert Bill Morgan brought attention to the confidential SEC memo, which provides insights into the agency’s internal deliberations on the security status of XRP. Pro Ripple attorney, John Deaton clarified that the memo didn’t explicitly categorize XRP as a non-security, but rather refrained from making any recommendations for enforcement.

Uncertainty Surrounding XRP Classification

Deaton pointed out that if the SEC displayed uncertainty about XRP’s classification in 2018, then it raises questions about how Ripple executives could have known they were in potential violation of securities law years earlier. Although the memo’s specific contents remain undisclosed due to privilege, it challenges the SEC’s current position that Ripple’s Brad Garlinghouse and Chris Larsen sold unregistered securities between 2013 and 2015.

Discussion of the memo comes a little over a month after New York district judge Analisa Torres ruled that institutional sales of XRP were securities transactions, but that secondary market sales, such as those on a crypto exchange, were not. The SEC now seeks to appeal the ruling, arguing there’s room for disagreement on the matter.

This new development further muddies the waters of an already complex legal battle, leaving both sides with more to deliberate in their ongoing confrontation over the classification and regulatory status of XRP. Further rulings in the case have the potential to shape the regulatory landscape across the asset class and influence the price of other leading cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH). Below, we analyze the charts and identify important trading levels.

Technical Analysis:  XRP, Bitcoin and Ethereum

XRP

XRP’s price has oscillated within a narrow symmetrical triangle since Friday. Volume continues to remain incredibly thin, increasing the risk of sudden volatility spikes in either direction. Moreover, a neutral RSI reading provides little clue on price direction. A breakout above the triangle pattern’s top trendline could drive a change in momentum to the upside and see bulls test overhead resistance around $0.61. However, a breakdown at these levels could result in a test of major support at $0.42.

Bitcoin

The Bitcoin price has traded in a range of under $1000 for the past five days. More recently, the 50-period simple moving average (SMA) has acted as a line of resistance. A break above the range’s top trendline could lead to a retest of the key $28,000 level. This area finds resistance from a crucial horizontal trendline and falling 200 SMA. Alternatively, failure to hold the lower trendline could trigger a move to long-term support around $25,000.

Ethereum

Like XRP, Ethereum’s price has traded within a narrow symmetrical triangle since late last week. Volume remains thin here also, with the price stuck below the 50 SMA. Despite the current bearish sentiment, a breakout above the pattern’s top trendline could spark a rally to resistance at $1,757. However, further weakness could see a continuation of the longer-term downtrend and possible test of crucial support around $1,475.