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Ripple (XRP) formally entered a new cycle by climbing above EMA at 50 weeks. The weekly XRP / BTC chart shows that Ripple (XRP) is set to print its four weeks of long candles that could bring the price to a new historical high. This time, the green candles in succession could see a red candle in the middle, but that does not mean that the price can not reach a new historical maximum. The reason that the price could see a red candle in the middle of a series of long green candles is that the RSI is already close to overbought levels while the price has not moved in the same way as expected during a cycle of Ripple (XRP).
The last few weeks have been difficult for Ripple investors (XRP) while Ripple's (XRP) lawsuit on its security status continues to haunt XRP holders like a Frankenstein. It has become something that Ripple (XRP) can not spit or swallow. Here's the thing. Ripple (XRP) fails Howey's test just like a ton of other cryptocurrencies when you insert them. The Howey test used to determine if something is a title or not has two simple clauses. The first clause states that it should be a money transaction. The second clause states that the investor intends to profit from the increase in value of the purchased good. So, if you are a buyer of XRP, both apply to you. You bought XRP with money and you're holding XRP because you think that at some point you might be able to sell it for a profit.
These are two simple clauses applicable to most cryptocurrencies. However, there is a third clause that only applies to certain cryptocurrencies like Ripple (XRP). He says that there should be a central body directly responsible for the investment. In other words, the value of XRP tokens depends on their actions. In this case, it is Ripple (the company). If they sign multiple partners and encourage more people to use XRP, you can expect these actions to affect the price of XRP. Now, we do not know for sure where this cause is heading, but Ripple (the company) is trying to push the case to the Federal Court because they believe they have a greater chance of winning there. Howey vs. United States has been an important precedent in most legal proceedings throughout history.
Chart for XRP / USD (1W)
However, there is no doubt that cryptocurrencies like Ripple (XRP) need to be addressed through more sophisticated laws and regulations instead of applying the old Howey test. This is because tokens are a new class of activity that does not guarantee participation in the company, while the purchase of shares involves the purchase of shares in a company. So if both are different things, then maybe we need different laws and regulations for both. Cryptocurrencies like Ripple (XRP) would certainly benefit from regulation. Ripple's CEO, Brad Garlinghouse, has stated many times that Ripple welcomes the regulation. However, this regulation should aim to allow the cryptocurrency market to grow rather than create impediments for innovative projects.
