Not surprising, Ripple is encouragingly resilient, free-floating above $1, much to the relief of the broader crypto and XRP community.
At the time of writing, XRP is down three percent on the last trading day, adding an impressive 13 percent week-to-date despite the back and forth with the SEC.
Ripple on Remittance
Admittedly, the SEC suit has been damaging to the Ripple project.
At the core, the protocol seeks to make payments more accessible and cheaper.
Their focus is on remittance and how partnering banks can leverage their product offerings, especially the On-Demand Liquidity (ODL).
“XRP’s primary purpose is facilitating cross border payments while other Cryptos find their value in speculation.”
— JackTheRippler🤫🐻🏦 (@RippleXrpie) October 7, 2021
Indeed, ODL is gaining traction as Ripple expected because of current legal challenges. The SEC thinks XRP is an investment contract and Ripple Labs illegally raised $1.2 billion by selling securities.
The Effects of the SEC Pronouncement on XRP
On pronouncement, XRP prices tanked before rebounding to even higher valuation while MoneyGram bolted, disassociating itself with the blockchain company.
Even though Ripple offered support, shoring the company from bankruptcy, MoneyGram denied this financial support.
👀SEC vs Ripple & XRP has a trail of damage.
1. Major set-back in payments innovation (Moneygram)
2. Harmed XRP investors who support utility
3. Damaged MG shareholders
4. Allowed Stellar/Circle to advance/unlevel playing field
5. Loss of precious time uncovering corruption. pic.twitter.com/UM33nCl38K
— CryptoEri 150k+ Followers (beware of imposters) (@sentosumosaba) October 9, 2021
The split also harmed MoneyGram investors since its stock fell due to understanding the dire financial situation at the payment processor. This is why the Ripple community thinks the failure of the SEC to answer congress by stating their position on Ethereum and Bitcoin is unfair.
The delay is stifling innovation and giving competing platforms like Stellar the advantage to carve out market share while XRP suffers, struggling to strike partnerships and build up liquidity.
While XRP may find more support going forward from exchanges, the delisting affected the project’s liquidity.
Ripple Technical Analysis
The XRP price is firm to the upside, rejecting lower lows. At sixth, XRP is up 13 percent versus the greenback, grinding higher with decent trading volumes.
From price action in the daily chart, the XRP coin is relatively steady versus the USD in a bullish breakout pattern above the middle BB and the $1 round number.
XRP prices may likely continue expanding in the days ahead. Notably, prices found support from the 61.8 percent Fibonacci retracement level.
While aggressive traders may load the dips, targeting $1.40, risk-averse participants may wait for a close above $1.40 before ramping the dips. In that case, the overall target is the 2021 highs of $1.9.
Losses below October 9 lows and the middle BB at $1 invalidates the uptrend, allowing bears of September 2021 back into the equation.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.