Ripple’s Legal Battles Threaten XRP Price, Attention Shifts to This Low Cap Coin
Fans of Ripple’s $XRP are clearly unfazed by the company’s legal troubles right now. On a day when the price of market leader Bitcoin ($BTC) has dropped 1.6% overnight and 4.5% in the last seven days, XRP is posting intraday depreciation of 1.1% after adding 2.2% over the week.
$XRP’s price stability comes despite the fact that a United States federal court judge has just green lit plaintiff Bradley Sostack’s civil securities lawsuit against the token’s progenitor Ripple Labs.
California District Court Judge Phyllis Hamilton’s recent ruling delegates a jury to decide whether Sostack’s claim that Ripple CEO Brad Garlinghouse made misleading statements in a 2017 interview holds any water.
In the interview on Canada’s BNN Bloomberg, Garlinghouse professed to being “very, very long” on XRP.
Sostack’s complaint points out that Garlinghouse made this claim while purportedly selling millions of XRP tokens that same year.
Ripple’s Chief Legal Officer, Stu Alderoty, expressed satisfaction with the court’s decision, stating that all class action claims were dismissed and this remaining California state law claim will be addressed at trial.
Ripple has shrugged off the worst of its legal troubles thanks to a landmark ruling in July 2023 by Judge Analisa Torres in a Securities and Exchange Commission (SEC) lawsuit.
Torres said sales of XRP to the public do not necessarily constitute securities sales. However, sales to institutions could constitute securities infractions under the Howey test.
XRP’s performance over the last three months is indicative of the growing stability enjoyed by market-leading tokens.
It has consistently traded between support levels of $0.46 and resistance at $0.56. However, a major breakout or crash appears unlikely
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