As a seasoned researcher with a decade of experience in the cryptocurrency market, I can’t help but feel a mix of intrigue and caution when it comes to XRP. The recent dip in price, coupled with the potential for an SEC appeal, paints a picture that is both complex and fascinating.
On Sunday, the price of XRP dropped by 2.62%, reaching $0.56, amid increased selling pressure in the crypto market. This decline represents a significant shift within a long-term triangle formation, potentially indicating a significant correction could be imminent. There are speculations that the bearish trend might strengthen further as certain reports suggest that the U.S. Securities and Exchange Commission (SEC) might choose to appeal specific parts of their final judgment.
Ripple Faces Potential SEC Appeal Despite $12.5M Penalty
In recent times, interest in the XRP digital coin has grown among cryptocurrency investors due to a positive outcome in the legal battle between Ripple and the Securities and Exchange Commission (SEC). On August 7th, Judge Torres handed down a penalty of $12.5 million against Ripple, which is significantly lower than the SEC’s initial request for $2 billion.
As the XRP community rejoiced at what they considered a significant victory, there were talks about the potential for the U.S. Securities and Exchange Commission (SEC) to file an appeal, focusing specifically on Ripple’s On-Demand Liquidity (ODL) transactions.
As a researcher, I’d like to share some insights from Attorney Jeremy Hogan regarding the ongoing injunction on Ripple’s On-Demand Liquidity (ODL) sales. Contrary to concerns, he suggests that this ruling may not significantly alter the current situation. The reason being, most XRP and ODL transactions occur beyond U.S. jurisdiction.
As a seasoned professional who has been in the online distance learning industry for over a decade, I have seen many changes and regulations come and go. However, based on my extensive experience, I believe that the recent injunction will not alter the current status quo for ODL sales in any significant way. Here’s why:
As a long-time cryptocurrency enthusiast with a keen interest in staying updated with industry developments, I believe it is crucial to address the recent news about Ripple and its XRP sales. Based on my understanding of their statement, it appears that Ripple has made it clear that the majority of its XRP and ODL (On-Demand Liquidity) sales occur outside the jurisdiction of the U.S., which means they are not subject to the current legal ruling. This is an important distinction for investors and enthusiasts alike, as it highlights the global nature of Ripple’s operations and the potential for XRP to be used in cross-border transactions beyond the United States. While I can’t predict the future, this strategy could prove beneficial for Ripple if they continue to expand their reach in other regions. It’s an exciting time to be a part of the crypto world, as we witness companies like Ripple pushing the boundaries and exploring new possibilities within the decentralized finance landscape.
— Jeremy Hogan (@attorneyjeremy1) August 7, 2024
Additionally, Hogan notes that Ripple’s legal team has had sufficient opportunity to adapt their procedures to align with the summary judgment decision.
XRP Price Hints Major Reversal Within Triangle Pattern
Over the course of the day, the XRP price chart indicates a significant change in direction at approximately $0.64, as the midweek recovery comes to an end. This bearish shift caused the asset value to drop by around 11.5%, reaching $0.56. Simultaneously, the market capitalization fell to approximately $31.9 billion.
Remarkably, the recent shift signaled yet another phase of bearish movement within the triangle structure that has been in place since September 2021. This graphical layout involves two converging lines – dynamic resistance and support – that gradually compress the price action into a narrow range before a significant breakout occurs.
According to data from Coinglass, the Open Interest-weighted Funding Rate for XRP stands at -0.0085. This negative figure indicates that short sellers are having to pay a fee to hold onto their positions, suggesting they anticipate a continued drop in XRP’s price.
As an analyst, I’ve noticed that the SEC’s recent reversal on Ripple’s ODL sale and potential appeal could intensify negative feelings towards XRP. Given the current wave of selling, there’s a high chance XRP might fall below the combined support of $0.55 and its 200-day Exponential Moving Average (EMA). If this happens, it may trigger a further decline, taking us down to the psychological level of $0.4.
At the $0.4 mark, bolstered by the triangle formation’s underlying support, represents a significant buying point for investors looking to scoop up during market downturns. A possible surge from this low could rekindle the upward trend, driving further recovery in the following phase.
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2024-08-11 22:36