XRP Price Facing Major Problem

What is happening

As a seasoned crypto investor with a decade of experience navigating market volatilities and regulatory challenges, I find myself both intrigued and cautious about the recent developments in the crypto sphere.


2024’s third-worst day for the S&P 500 occurred on Wednesday, September 4th. The stock market was volatile due to anticipation of significant U.S. employment statistics, which will impact the magnitude of the Federal Reserve’s planned interest rate reduction in September.

In the eyes of Wall Street, Bitcoin is considered a high-risk investment. Reflecting overall market mood, it briefly bounced back then plummeted again.

On Friday, I observed a somewhat ambiguous job market indication. While the S&P 500, Dow futures showed minimal growth, they were overshadowed by a significant decline in Nasdaq-100 futures. Specifically, the Nasdaq-100 fell more than 1%. This suggests that technology-heavy stocks may have faced challenges that day, which could be a potential area of focus for further analysis.

XRP Price Facing Major Problem

Over the past few days, XRP, one of August’s leading altcoins, has experienced a steady downtrend. Since Wednesday, its value has dropped by more than 4%. By Friday, its trading activity kept it within a narrow span of $0.53 to $0.54.

Ripple v. SEC

Ripple Labs’ lawyers have asked for a pause in the part of the August 7 verdict that obligates the company to give the U.S. Securities and Exchange Commission (SEC) $125 million in cash.

Through a filing dated September 4th, Ripple suggested keeping approximately $139 million, representing 111% of the judgment amount, in a bank account. This money would remain untouched until either the deadline for appeals passes or any appeal-related decisions are made. The Securities and Exchange Commission has consented to this delay.

Despite Ripple executives initially viewing the ruling as a victory, this proposal arises at a time when the SEC is pondering an appeal.

Lawyer Fred Rispoli has confidently assured the public that if an appeal from the SEC occurs, it’s unlikely a decision would be made before the year 2026. He also pointed out that recent legal actions taken by the SEC against various exchanges have minimized the influence of this specific case.

Introduction of smart contracts

Ripple has just disclosed its plans to incorporate smart contracts into the XRPL development community, meaning they aim to enable users to write code for self-executing contracts on the XRP Ledger.

Smart contracts are digital agreements saved in the blockchain, which run themselves once certain criteria are fulfilled. Essentially, they function as computer programs responsible for managing transactions and arrangements, eliminating the requirement for intermediaries.

2/ By 2025, Ripple and its XRP community aim to introduce advanced programmability features like smart contracts to the XRP development environment. This will be achieved through the ongoing development of the XRPL EVM sidechain, as well as investigating native functionalities directly on the XRPL Mainnet.— Ripple (@Ripple) September 3, 2024

Ripple has revealed that this action will provide multiple possibilities for users, creators, and business owners. The goal is to entice programmers to leverage the extended functions of XRPL.

As per Ripple’s announcement, it’s expected that the smart contract functionality will become active “within the next few months” within the EVM sidechain of the XRP Ledger.

Price prediction

A pessimistic outlook prevails across the cryptocurrency market, with many experts like Ali Martinez and Arthur Hayes forecasting that Bitcoin‘s price might fall below $50,000, as we experience a prolonged period of correction within the broader crypto sector.

It seems that even the usually patient whales in the market seem to be losing faith, as Whale Alert has recently detected a transfer of 100 million XRP tokens, worth approximately $54.5 million, to an unknown wallet. This action suggests some whales may be selling their holdings as the price moves sideways.

As a crypto investor, I recently discovered that a significant movement of 100 million XRP tokens was detected by the tracking service Whale Alight, with the exact destination being an unidentified wallet.

Looking from a technical perspective, the value of XRP dropped from its 20-day Exponential Moving Average (EMA) of $0.57 on August 31, touching a support point at $0.54 on September 1.

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2024-09-07 18:39