As an experienced financial analyst, I have closely monitored the cryptocurrency market for several years. The current state of XRP price, amid Ripple’s regulatory woes, is a cause for concern. The lethargic trading atmosphere and the constant struggle between resistance and support levels are not unique to XRP but are reflective of the overall crypto market.
The XRP token is currently trapped in a monotonous market condition, marked by limited advances and significant declines. Despite a slight gain of 1.1% over the past day, its value has dropped by 0.5% within the last few hours to reach $0.52. This dull technical scenario is consistent across other major cryptocurrencies as well. Bitcoin is finding it challenging to surpass resistance at $64,000, while Ethereum is oscillating between support at $3,100 and resistance at $3,200.
Is XRP Price Doomed Amid Ripple’s Regulatory Woes?
Ripple, the organization behind XRP, has recently disclosed significant changes taking place within the network, which is well-known for facilitating cross-border payments using blockchain technology.
The Ripple vs. SEC legal battle shows little signs of a favorable outcome for XRP, leading the blockchain company to restructure its On-Demand Liquidity (ODL) offering, focusing primarily on American clients.
I’ve analyzed recent reports indicating that Ripple is set to utilize Tether (USDT), the largest stablecoin, for transactions with its US-based clients through its On-Demand Liquidity (ODL) service. However, it’s important to note that a subsidiary of Ripple, situated in Singapore, manages ODL customers at present. This information was disclosed by Moon Lambo, a well-known YouTuber.
Monica Long, the president of Ripple, stated in a recent declaration that Ripple itself doesn’t have any On-Demand Liquidity (ODL) customers. However, Ripple’s latest filing discloses that a subsidiary based in Singapore does have ODL clients utilizing XRP. It remains unclear whether an injunction against Ripple’s ODL would also affect the Singaporean subsidiary. Consequently, if the injunction doesn’t extend to the subsidiary, then Ripple could potentially continue its ODL operations through this entity.
— Moon Lambo (@MoonLamboio) April 25, 2024
Last year’s court decision classified institutional XRP sales as securities, leading Ripple to take this action. Consequently, the Securities and Exchange Commission (SEC) has proposed imposing a $2 billion penalty on Ripple for allegedly breaking US securities laws.
Going forward, Ripple has taken steps to disassociate itself from XRP sales in the United States; however, it continues to facilitate such sales through non-American companies. In contrast, American businesses are now utilizing USDT for currency transactions.
Bill Morgan, a lawyer with a keen interest in digital assets, expressed his concern over the potential impact on XRP following this development. In his perspective, shared on platform X, “those dismissing concerns due to XRP’s supposed clarity are underestimating the negative ramifications for XRP and its associated ecosystem if Ripple’s ODL (On-Demand Liquidity) is permanently banned or if XRP usage in ODL is disallowed.”
As a researcher studying the cryptocurrency market, I’ve noticed some concern among XRP holders regarding the upcoming trial in the ongoing lawsuit against Ripple Labs. Some of these investors express uncertainty and even consider selling their XRP tokens, questioning whether a potential move by Ripple to leave the US would significantly impact the token’s value.
If Torres issues a permanent injunction against Ripple in the ODL case, I’m afraid I must depart. The potential consequences for Ripple’s business are too great a risk I’m unwilling to take. While it’s theoretically possible for the company to continue operating outside of the US, it’s not a risk I’m prepared to take. Sigh.
— Sherrie (@CherryEmpress21) April 24, 2024
Can XRP Price Resume The Uptrend?
The price of XRP maintained a floor at $0.5254 during US trading sessions on Friday. Following Bitcoin’s halving, XRP had climbed up to $0.5664 within the current week. However, the ascent was halted by resistance levels marked by the 50-day Exponential Moving Average (EMA) and the 200-day EMA, signified by the red and purple lines on the chart.
As a crypto investor, I would interpret an RSI reading of 39 as a sign that sellers are currently dominating the market. If the downtrend into oversold territory persists, it’s likely that the price will continue to trend downward in the short term, potentially leading to losses below $0.5.
Alternatively, if the price stays above $0.55 or ends the day above $0.52, it could motivate buyers to trigger a breakout from the falling wedge pattern. This could potentially propel XRP up to $0.7 and then bring it closer to $1.
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2024-04-26 18:20