Ripple board member throws shade on Bitcoin as XRP price prepares to reclaim $1
- XRP price is looking primed for a move to flip the $1 resistance level into a support barrier.
- Former US treasury Rosie Rios says XRP is for ‘payments” as she vaguely supports China’s decision to ban Bitcoin since it is just a speculative asset.
- Ripple’s fight with the SEC continues as CEO Brad Garlinghouse signals that they are open for settlement.
XRP price failed to sustain its gains obtained on September 22, resulting in a retracement to a stable support floor. While an uptrend appears to be on its way, Ripple will encounter a psychological level acting as resistance.
Ripple vs. Bitcoin and payments vs. speculation
Ripple has been in a long-standing battle with the US Securities & Exchange Commission. While the conclusion of this lawsuit does not seem to be on the horizon, CEO Brad Garlinghouse floated the idea of settlement in a recent interview. He added that the SEC needs to define what XRP is on a “go-forward basis” for Ripple to consider a settlement.
On a similar note, Ripple board member Rosie Rios tweeted on Monday, differentiating the use-case between XRP and BTC. She used China’s decision to support her argument that the big crypto has no use-case apart from being a speculative instrument.
XRP’s primary purpose is facilitating cross border payments while other #Cryptos find their value in speculation. China’s latest move brings this point home.
While Rios’ tweet received some harsh criticism, she clarified her intentions the next day.
Want to clarify that IMO. While Ripple is committed to the cross-border use case, developers globally everyday are pursuing other use cases, including store of value, medium of exchange, etc for multiple blockchains/cryptos.
— Rosie Rios (@RosieRios) September 27, 2021
In a recent revelation, Ripple’s motion to get their hands on the trading history of SEC’s employees was denied.
XRP price eyes retest of $1
XRP price seems to have bottomed around $0.88 as it kick-starts an uptrend. This climb is mainly driven by the sudden bullishness after the crash due to China’s crackdown. Investors can expect Ripple to encounter the first hurdle at 50% Fibonacci retracement level at $0.966.
Clearing this blockade will open the path for a retest of the $1 psychological barrier.
While this ceiling was significant support from September as the price tested it nearly five times before the bears pushed through it on September 20, therefore, going forward, it will require a massive burst in buying pressure to shatter it.
Assuming the bulls slice through $1, there is a chance the rally will extend to $1.135 and $1.236. This ascent from the current position to $1.236 would constitute a 35% ascent.
XRP/USDT 6-hour chart
The buyers must push through the $1 barrier, and failing to do so will indicate a sign of weakness. Any surge in selling pressure could knock the remittance token down to the 62% Fibonacci retracement level at $0.856.
If this support floor is breached, it will create a lower low, invalidating the bullish thesis.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
