The Class Action Law Suit on Tezos has been dismissed, but the Federal Law Suit is not OverNovember 29, 2019
The Federal Lawsuit on Tezos continues. Alex Liu of Tezos Commons stated that contrary to the suggestion on the social media about the lawsuit as being over. There was a dismissal of a class-action lawsuit; however, the Federal lawsuit is not over.
“Even though that would certainly be great news for the Tezos community, unfortunately, that’s not true.”
There has been “no significant movement” on the Federal Law Suit. The suit has been rescheduled for early next year. The conference has been previously rescheduled for December 12, 2019, but now it will take place during February 06, 2020.
The Federal Lawsuit considers the Tezos to be a security. The US Securities and Exchange Commission did not file the suit. Tezos is now sued by private parties who are looking to claim refunds and damages on their investment.
Several projects have given in to their opponents, and they arrived at quick settlements to gain regulatory approval; however, Tezos is not likely to give up to its opponents. This is one reason why the case continues ever since 2017.
The SEC inevitably places restrictions on securities investment; however, there have been a lot of misconceptions, and the SEC is not investigating Tezos.
Apart from the suit, Tezos had a great year with the Year-To-Date (YTD) return of 185%. The previous class-action suit did not prevent the token from getting listed in several major exchanges. Several retail investors have invested in the token, and the price is bullish. Tezos should pass a 7-month falling resistance line if it were able to continue its bullish run further.
Decisions on the ambiguous outlooks concerning the tokens are made considering the support and resistance points set by the Fibonacci retracement level.
The overall sentiment is in favor of Tezos. There has been a significant increase in volume. If there will be an increase in the sell orders, this might trigger a 20 to 50% retracement. The technical analysis projects an ambiguous path, and therefore it is felt that trading these tokens comes with high risks. Investors might do well waiting for a break above 23.6 or below the 50% Fibonacci retracement level before they can enter a trade.
If the price of the Tezos would move past the 23.6% on the Fibonacci retracement level, the token will break out of the bull flag pattern as observed on the 1-week chart. Investors need to watch the momentum before making their buys.