Ripple shelves SEC lawsuit to strengthen market presence with investments, 10% payoff for investors
- Ripple Labs recently purchased Bitstamp shares previously owned by an American investment firm, Pantera Capital,
- The move was part of Ripple’s commitment to network expansion amid prolonged issues with the SEC.
- It also aroused speculation of plans to continue with On-Demand Liquidity (ODL) objectives or improve its Liquidity Hub (LH) solution.
Ripple (XRP) price is poised for a 10% upswing amid a new move by the company to strengthen its market presence with investments. Based on a recent quarterly report from Galaxy Digital, the popular blockchain company has purchased Bitstamp shares. Notably, the acquisition involved shares previously belonging to Pantera Capital, an American investment firm specializing in digital assets and asset-based companies.
Also Read: Ripple price eyes 5% gains as $1.9 billion in market capitalization comes in
Ripple doubles down on network expansion despite SEC lawsuit
Ripple (XRP) is doubling its expansion vision and growth objectives despite the ongoing XRP lawsuit against the US Securities and Exchange Commission (SEC). According to Ripple CEO Brad Garlinghouse, the company boasts approximately $1 billion in reserves that could be channeled toward expansion projects.
Ripple aspires to be more than just liquidity & payments.
— Crypto Eri 220k+ Followers (Beware of Imposters) (@sentosumosaba) May 18, 2023
Acquisitions in crypto-friendly markets (like UAE and Switzerland), for expansion. pic.twitter.com/yTRMEasngN
Another citing of Ripple’s new acquisition was captured during a shareholder update conference call with Galaxy Digital President and CIO Christopher Ferraro. There is yet another mention of this move by influencer WrathofKahneman, who alleged that the acquisition represented something more than a mere purchase.
2. In 2014, Pantera invested $10m in Bitstamp (out of $12m round). Bitstamp is valued ~$400? (estimates vary). Trying to dig up more tx details. https://t.co/Va9HlQMz5M
— WrathofKahneman (@WKahneman) May 23, 2023
The tweet has sparked speculation on whether Ripple’s new acquisition opened it to continue with its On-Demand Liquidity (ODL) objectives or improve its Liquidity Hub (LH) solution. Meanwhile, Bitstamp remains among Ripple’s oldest partners for ODL, which adds weight to their partnership. Evidence of this is in the January move by Bitstamp to expand its services on the XRP Ledger (XRPL) via EUR-backed IOUs integration into the network.
Nevertheless, it should be noted that by acquiring Bitstamp shares, Ripple company advances its efforts to pursue growth opportunities in the agile and fast-paced digital asset space.
Ripple price picks network news over Bitcoin dominance, with 10% gains in sight
Ripple (XRP) price is coiling up for a 10% breakout after overcoming selling pressure presented by the 50-day Exponential Moving Average (EMA). Its current price of $0.453 is ushering in a new cohort of buyers from the 100- and 200-day EMA at $0.445 and $0.436, respectively. An increase in buyer momentum above these levels could fuel a rally north, potentially toward the $0.491 resistance level, or, in a highly bullish case, tag $0.559, denoting a 20% climb.
The Parabolic SAR, a trend-following indicator, had just flipped below the XRP price to indicate more gains to come. This reinforces the positive outlook. Further, the Awesome Oscillators (AO) were steadily but progressively pulling towards the positive zone above the mean line, adding credence to the bullish thesis.
XRP/USDT 1-Day Chart
On the other hand, traders booking profits at break-even could halt the northbound gusto for Ripple price. Below the three EMAs, a breakdown could see the remittance token retrace the $0.408 support base before a possible bounce.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
