The highly anticipated legal battle between Ripple Labs and the SEC continues to unfold, with both parties exchanging blows in recent court filings. While the broader cryptocurrency market witnessed a downturn, XRP defied the bearish trend, experiencing a brief surge following Ripple’s strategic move.

Ripple Cites Binance Ruling in Defense

On July 2nd, Ripple Labs filed a Notice of Supplemental Authority, referencing a recent court decision involving the SEC and Binance. The judge in the Binance case dismissed the SEC’s claims that secondary market sales of Binance Coin (BNB) constituted security transactions. Ripple argues that this ruling strengthens their position, suggesting that XRP sales are not securities either.

SEC Counters Ripple’s Argument

The SEC wasted no time in responding to Ripple’s filing. On July 3rd, they submitted a counter-argument, downplaying the relevance of the Binance ruling to the Ripple case. The SEC asserts that Ripple misinterprets the ruling and that it doesn’t address the issue of “fair notice” – a legal concept requiring proper notification of potential legal actions.

SEC Emphasizes Fair Notice

The SEC argues that they provided the crypto industry with ample notice regarding XRP through a DAO Report issued in July 2017. They further reference the Binance ruling, highlighting that the court rejected the “fair notice” defense used by the defendants in that case. The SEC suggests this aligns with their position that Ripple had received sufficient warning regarding the potential regulatory implications of XRP sales.

XRP Price Movement

Despite the ongoing legal battle, XRP managed to buck the broader market trend and experience a temporary price increase on July 2nd, likely fueled by the company’s filing. However, the uptick was short-lived, and XRP ultimately ended the day down 3.77%.

XRP/USD Technical Analysis

From a technical standpoint, XRP’s price currently sits below both the 50-day and 200-day exponential moving averages (EMAs), indicating a bearish trend. A break above these lines would signal a potential reversal, while a drop below $0.4650 could see XRP test the $0.45 support level.