As a seasoned researcher with years of experience in the cryptocurrency market, I have witnessed firsthand the rollercoaster ride that digital assets can take. The recent performance of XRP has been no exception – from its bullish momentum on Friday to its weekend sell-off at $0.63.
XRP price commenced the new week on a bearish note as sellers tightened their grip on the token. The international money remittance token mirrored the bullish momentum in the broader cryptocurrency market on Friday, courtesy of Jerome Powell, the Fed Chair’s speech at the Jackson Hole Symposium. However, XRP bowed to overhead pressure at $0.63 during the weekend, suggesting early profit booking among investors.
XRP Price Market Movers: On-Demand Liquidity and Potential SEC Appeal
On Monday, the value of XRP was traded under $0.6, representing a minor decrease of 0.8% over the past day. However, it showed a more substantial weekly growth of approximately 2.5%, according to information from CoinGecko.
After the court decision in favor of Ripple in its legal battle with the SEC, focus has shifted towards On-Demand Liquidity (ODL), a product developed by Ripple. ODL facilitates instant international money transfers. Originally intended to utilize XRP as an intermediary currency, Ripple distanced itself from the token during the lawsuit and instead emphasized its use of stablecoins.
With the lawsuit resolved and the status of XRP as a cryptocurrency confirmed, it’s reasonable to expect that Ripple may decide to utilize XRP more extensively. This strategic move could potentially boost its usefulness and demand, as well as drive up the price of XRP.
Currently, the Securities and Exchange Commission (SEC) has yet to make a public statement regarding their final decision and any potential appeals. However, Judge Analisa Torres did grant Ripple’s request for an injunction, requiring them to comply with U.S. securities laws in future transactions. Despite this, she denied the SEC’s additional request to halt XRP sales to institutional investors. Consequently, if the SEC chooses not to appeal the injunction, Ripple could utilize XRP in their ODL system within the U.S. market. There is a 50-50 chance that the SEC might file an eleventh-hour appeal, which could potentially complicate Ripple’s plans for expanding ODL in the United States.
XRP Price Prediction: BullsTo Resume Uptrend
In simpler terms, the price of XRP is closely following its 50-day Exponential Moving Average (EMA), which stands at approximately $0.596. If XRP bounces back above this moving average, it could potentially reignite an uptrend for the Ripple price, pushing it past $0.6 or yesterday’s opening price.
As the Relative Strength Index (RSI) remains in its neutral zone, a further surge in XRP price is likely. When the RSI surpasses 50, it indicates a shift in the trend towards upward momentum, enticing more traders to invest in long positions, thereby potentially driving prices even higher.
Translating that into simpler terms:
The possibility of an appeal in the ongoing lawsuit against XRP leaves its price stuck in a holding pattern. If the Securities and Exchange Commission (SEC) decides to proceed with their motion, it could decrease the likelihood of XRP being included in the On-Demand Liquidity (ODL) system, limiting its potential for widespread adoption and potentially affecting its upward trend. In such a scenario, the risk of a sharp price drop might increase, possibly leading to a 50% sell-off from the current value down to $0.3, which is considered a primary support level.
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2024-08-26 14:56