The Securities and Exchange Commission (SEC) is attempting to flip one of its biggest losses into some semblance of a victory. This is evident by the most recent filing from the regulatory body against Ripple seeking court intervention over undisclosed document requests. XRP price, on the other hand, is trending in an unfavorable direction.
The SEC filed a reply in further support of its motion to compel against Ripple on Tuesday in the court. The reason behind this filing, as noted by the regulatory body, was for Ripple to provide audited financial statements for two years and post-complaint Institutional Sales contracts and to answer one interrogatory relating to pre-complaint Institutional Sales.
A motion to compel is filed when a party believes the opposing side hasn't adequately responded. The motion outlines the unresolved issues, emphasizes legal support, and seeks court intervention to compel the opposing party to fulfill disclosure obligations. Timeliness and adherence to court rules are essential, making the motion a tool to address non-compliance and ensure fair resolution of the case through the mandated sharing of pertinent information.
This is also evidence that the SEC does not plan on letting the case go without a win, despite partially winning the court's favor wherein XRP was given the status of being a security when it comes to institutional sales.
XRP price, at the time of writing, is trading at $0.514, still stuck in a downtrend that started at the beginning of the year. During this time, the altcoin lost support at $0.600 and $0.550, and is now inching closer to tagging support at $0.500.
As is, the altcoin is trading at a three-month low, and further decline would result in the cryptocurrency falling to the low of $0.476. The Relative Strength Index (RSI) is not particularly bullish either, sitting in the oversold zone for the first time in five months. Usually, this is a sign of potential reversal, but until broader market cues support this thesis, XRP price will remain await a recovery rally trigger.
XRP/USD 1-day chart
Should that arrive, traders should watch out for the XRP price rising to $0.540, as breaching this resistance level would invalidate the bearish thesis and send the Ripple token to $0.551 and beyond.