- Ripple calls Tetragon’s request an opportunistic move to benefit from the SEC’s allegations.
- A Delaware court ruled that XRP has not been deemed a security, thus denying the investor’s claim.
- Ripple is getting closer to a breakout amid the consolidation, as observed by the Bollinger Bands.
Ripple, the embattled blockchain company based in the United States, recently refused to refund $175 million invested by Tetragon Financial Group during its Series C funding. The United Kingdom-based investor filed a request in January to have Ripple pay back the stock. However, the cross-border company took to the court to have the request thrown out.
Ripple defends its decision to deny the $175 million claim
Tetragon requested the lawsuit filed by the Securities and Exchange Commission (SEC) in December. The SEC seeks to prove that XRP is a security and that it has traded for nearly eight years without official registration with the regulator. Moreover, the company and its top executives have sold unregistered securities to investors, raising $1.3 billion.
Delaware’s Court of Chancery ruled against Tetragon’s request, which stated in part that it “has the option of having Ripple redeem their Ripple equity.” In the ruling, the court said that the matter was premature because XRP was not deemed a security.
XRP is no more a security after the SEC filed the enforcement action than it was before it.
The enforcement action, by contrast, asks that question. The question is not yet resolved, so a determination has not yet been made.
According to Ripple, the move by Tetragon is an opportunist in the sense that it is meant to take advantage of the allegations filed by the SEC. Ripple is also aggressive because the court has not proved the allegations are right and that XRP should be deemed a security. The blockchain company wrote in a statement:
We look forward to bringing the SEC’s case to a just and speedy resolution and remove the cloud that the SEC’s misguided actions have cast over the XRP market.
Ripple nears a breakout
XRP is trading marginally above $0.46 at the time of writing. The Bollinger Bands confirm that the consolidation will soon culminate in a breakout. Note that for a bullish breakout, the Bollinger Bands’ middle boundary support must hold. Similarly, the resistance highlighted by the 50 Simple Moving Average (SMA) must come down to validate the upswing toward $0.6.
XRP/USD 4-hour chart
The 12-hour SuperTrend indicator adds credibility to the bullish outlook. This indicator shows the general trend of an asset by identifying positions to either long or short. Since it flipped bullish in January, the SuperTrend indicator is still green and holding under the XRP.
XRP/USD 12-hour chart
It is worth mentioning that the bullish outlook will be discredited if Ripple fails to close the day above the Bollinger Bands’ middle boundary. On the upside, if resistance at the 100 SMA remains intact, recovery will also delay. Support is expected at the 50 SMA on the 4-hour chart. If push comes to shove, XRP will seek refuge at $0.4.
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