The growth of XRP has been tumultuous partly thanks to its ongoing lawsuit and the volatile markets of course. However, its increased adoption and network developments have kept it going.
There is now a recent update on the lawsuit, as Attorney John E Deaton in his latest tweet says that he has “objective imperial evidence”. The evidence demonstrates that the majority of XRP holders, over 60%, had never heard of Ripple before investing in the token for the first time.
According to the Howey Test, it will be nearly impossible to determine whether the XRP community was “relying on the promises and inducements of a promoter or company they are unaware of” in the future.
By December 6, 2021, the SEC must respond to the crux of the dispute, namely, why does XRP have securities status, making it one of the most crucial dates of judgement for XRP holders.
XRP holders face the brunt of lawsuit
XRP holders are trapped with frozen assets and a disproportionately bearish run during one of the fastest bull seasons, despite the community’s indisputably constant attempts to battle the SEC.
Last month, Attorney Deaton petitioned the court on behalf of the XRP community. He requested that any future extensions be denied due to the significant amount of XRP involved. The majority of XRP is held in retirement brokerage accounts, which have likewise been “frozen”. Due to the pending case, XRP holders are unable to handle their funds in any way, including withdrawing them.
While the SEC has maintained its assertions regarding XRP’s securities character, it has also accused the defendants of violating the Securities Act by refusing to sell these digital assets. The Movants, had already rebutted this position last month, claiming that if XRP sales are labeled as illegal, the list of perpetrators goes much beyond Ripple and individual defendants.
XRP Price Action
XRP price was down a tad at 1.62 percent as of writing. But it had rallied from intraday lows after finding solid support formed by the 1.03890 price mark and the daily chart’s channel’s return line.
The 1.03890 support level forms instant support when it intersects the channel’s trendline. A bounce from this area aims for the 1.12547 resistance level before hitting the 1.24180 and 1.32295 resistance levels. A break above this level opens the door to the September high of 1.4000.