Ever since Ripple Labs has found itself tangled in controversy over the US Securities & Exchange Commission, Ripple (XRP) has suffered badly. The debate over whether or not XRP is a security and had been traded while unregistered continues. However, XRP– after staying stagnant at a price level below $0.30 – started showing bullish momentum as the news of the lawsuit settled.
As Ripple Labs bags a small victory in the lawsuit, the cryptocurrency surged upwards and broke the strong resistance level of $1, however, the level could not be established as support by XRP. At the time of press, XRP is trading hands $0.97 apiece while the $1 mark is acting as resistance again. However, it has now become evident that the bullish momentum of the cryptocurrency is going strong – making traders hopeful that Ripple will establish itself stably above $1.
The primary argument of SEC is that XRP – in its working – is dissimilar to Bitcoin and Ethereum while Ripple Lab’s counterargument is the similarity between XRP and the two major cryptocurrencies. To support their argument, the counsel of Ripple Labs had filed a discovery motion aimed at revealing SEC’s documents of Bitcoin and Ethereum to prove their similarity with XRP.
Magistrate Sarah Netburn has granted Ripple Labs the motion in the $1.3 billion lawsuit. The documents can either be Ripple Labs way out or a dead end – time will tell.