Ripple’s native token, XRP, has been making headlines for its impressive price performance in the midst of a bearish trend and a court case with the SEC in the wider cryptocurrency market. While major cryptocurrencies like Bitcoin and Ethereum have suffered price drops due to the collapse of Silvergate Bank, XRP has shown resilience. This can be attributed to two main factors: Ripple’s Chief Legal Officer’s confidence in winning the lawsuit against the SEC, and the increasing adoption of the token by various platforms and institutions.
Stuart Alderoty, Ripple’s CLO, has expressed his optimism about Ripple’s legal position and criticized the SEC’s lack of clarity and consistency in regulating cryptocurrencies. According to Alderoty, Ripple has been “extremely transparent” with its customers and partners about its ongoing litigation.
The SEC filed a lawsuit against Ripple and its executives, claiming that XRP is a security and should have been registered with the SEC. However, Ripple denies this and maintains that it is not a security.
One of the main reasons Ripple believes that its crypto token is not a security is that it is not an investment contract. Ripple argues that XRP is a digital asset that has a specific use case: facilitating cross-border payments. Moreover, Ripple maintains that its token is decentralized, meaning that it is not controlled by a single entity. This makes it different from traditional securities, which are often issued by a single company or organization.
In addition to Ripple’s legal defense, XRP’s growing adoption is also contributing to its resilience. It has been listed on Bitstamp Europe, one of Europe’s largest crypto exchanges, and has integrated with Flare Networks, a smart contract platform that aims to bring DeFi capabilities to XRP. It has also partnered with Tranglo, a cross-border payment service provider in Asia, and has been included in Bitrue’s Power Piggy program, which allows users to earn passive income by staking their tokens.
From a technical analysis standpoint, XRP has been trading above its 200-day moving average since late February 2023, indicating a bullish trend. This is further evidence that XRP could be winning the case against the SEC. If this trend continues, it could face resistance at $1.20 and support at $0.80.
Ripple’s legal defense and XRP’s growing adoption are key reasons why this crypto asset could win the case for not being a security. While the outcome of the lawsuit remains uncertain, its resilience suggests that investors and market participants are confident in its future prospects as a digital asset with a specific use case.