Ripple collaboration could catalyze gains in RWA sector, XRP stuck below $0.50


  • Ripple extended collaboration with Archax for tokenizing Real World Assets at the XRP Ledger APEX 2024 summit.
  • The FCA-regulated digital securities exchange could help RWA projects bring their assets to XRP Ledger. 
  • XRP extended its seventh day of losses to nearly 8% on Friday, down to $0.48. 

Ripple (XRP) announced that the payment remittance firm extended its collaboration with FCA regulated digital securities exchange Archax. The collaboration is focused on Real World Asset (RWA) tokenization, an emerging narrative in the ecosystem. 

Archax will help bring projects to the XRPLedger,  enabling the tokenization of millions of assets and enhancing the utility of Ripple’s blockchain. 

XRP struggles to break past and close above key psychological resistance at $0.50. The altcoin wiped out nearly 8% in value in the past seven days on Binance. 

Daily Digest Market Users: Ripple announces collaboration with FCA-regulated entity

  • Ripple’s announcements at its annual summit XRP Ledger APEX 2024 are the current market movers for XRP in the absence of new updates in the Securities and Exchange Commission’s (SEC) lawsuit against Ripple. 
  • XRP holders are awaiting a ruling in the case. The latest move is Ripple’s letter supporting its motion to seal documents that contain sensitive financial information from the payment remittance firm. 
  • The last filing was made on May 29, 2024. 
  • In APEX 2024, Ripple has announced an extended collaboration with Archax, a regulated exchange that will bring RWA projects to the XRP Ledger. The goal is to tokenize millions of dollars in real world assets on the Ledger, boosting Ripple’s utility. 
  • Archax made an official announcement and dropped the details in a blog post. 

Technical analysis: XRP could sink deeper into the red

Ripple is in a downward trend that started on March 12. The altcoin has been in a state of decline, down from the March 11 peak of $0.7440 to the April 13 low of $0.4188. Ripple could extend its losses by another 3% down to the April 19 low of $0.4665, as technical indicators flash bearish signals. 

The Moving Average Convergence Divergence (MACD) indicator shows red histogram bars under the neutral line, signaling underlying negative momentum in the XRP price trend. The signal line crossed over MACD on Thursday, June 6, confirming the decline. 

Ripple

XRP/USDT 1-day chart 

In the event of a daily candlestick close above $0.4955, the 23.6% Fibonacci retracement level of the decline between March 11 and April 13, the bearish thesis could be invalidated. XRP could rally towards the Fair Value Gap (FVG) between $0.5008 and $0.5164. Once the gap is filled, the altcoin is expected to resume its decline. 

SEC vs Ripple lawsuit FAQs

It depends on the transaction, according to a court ruling released on July 14: For institutional investors or over-the-counter sales, XRP is a security. For retail investors who bought the token via programmatic sales on exchanges, on-demand liquidity services and other platforms, XRP is not a security.

The United States Securities & Exchange Commission (SEC) accused Ripple and its executives of raising more than $1.3 billion through an unregistered asset offering of the XRP token. While the judge ruled that programmatic sales aren’t considered securities, sales of XRP tokens to institutional investors are indeed investment contracts. In this last case, Ripple did breach the US securities law and will need to keep litigating over the around $729 million it received under written contracts.

The ruling offers a partial win for both Ripple and the SEC, depending on what one looks at. Ripple gets a big win over the fact that programmatic sales aren’t considered securities, and this could bode well for the broader crypto sector as most of the assets eyed by the SEC’s crackdown are handled by decentralized entities that sold their tokens mostly to retail investors via exchange platforms, experts say. Still, the ruling doesn’t help much to answer the key question of what makes a digital asset a security, so it isn’t clear yet if this lawsuit will set precedent for other open cases that affect dozens of digital assets. Topics such as which is the right degree of decentralization to avoid the “security” label or where to draw the line between institutional and programmatic sales are likely to persist.

The SEC has stepped up its enforcement actions toward the blockchain and digital assets industry, filing charges against platforms such as Coinbase or Binance for allegedly violating the US Securities law. The SEC claims that the majority of crypto assets are securities and thus subject to strict regulation. While defendants can use parts of Ripple’s ruling in their favor, the SEC can also find reasons in it to keep its current strategy of regulation by enforcement.

The court decision is a partial summary judgment. The ruling can be appealed once a final judgment is issued or if the judge allows it before then. The case is in a pretrial phase, in which both Ripple and the SEC still have the chance to settle.


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