- Nasdaq-listed firm Worksport Limited revealed its plan to adopt Ripple's XRP and Bitcoin as a corporate treasury asset.
- Ripple's battle with the SEC may conclude when new Chair Paul Atkins resumes office.
- XRP could bounce off the $1.96 support level amid its recent decline.
Ripple's XRP is down 5% on Thursday following an announcement from Tonneau cover manufacturer Worksport that it would add the remittance-based token as part of its corporate treasury.
XRP down amid Worksport's plan to add it as a treasury asset
Following the footsteps of business intelligence firm MicroStrategy, Nasdaq-listed company Worksport is set to adopt Bitcoin and XRP as part of its corporate treasury.
In a blog post on Thursday, the tonneau cover manufacturer stated that it would commit up to $5 million to buy Bitcoin and XRP.
The company stated that this strategic move aims to improve transaction efficiency while emphasizing its long-term confidence in cryptocurrency as a store of value and a hedge against inflation.
"Our upcoming adoption of Bitcoin (BTC) and XRP (Ripple) reflects our commitment to staying ahead of market trends while prioritizing operational efficiency and shareholder value," said Steven Rossi, Chief Executive Officer of Worksport Ltd.
This aligns with the increasing global acceptance and institutional adoption of digital assets.
Worksport adopting XRP as part of its corporate treasury is a big win for the asset, especially considering its ongoing court case with the Securities & Exchange Commission (SEC).
The SEC appealed Judge Analisa Torres's ruling that XRP sold to retail investors doesn't fall under securities classification. She also reduced the $2 billion fine the SEC requested from Ripple to $125 million.
The SEC's appeal challenges parts of the ruling but does not contest XRP's non-security status.
However, there has been growing optimism in favor of Ripple Labs following the presidential election, particularly after SEC Chair Gary Gensler disclosed he would resign from his role at the agency on January 20.
President-elect Donald Trump has already nominated Patomak Global Partners CEO Paul Atkins as Gensler's replacement.
Several top crypto voices, including Ripple CEO Brad Garlinghouse, have shown support for Trump's replacement choice.
An outstanding choice – Paul Atkins at the helm of the SEC will bring common sense back to the agency. Along with Hester Peirce and Mark Uyeda, it’s time to swiftly and definitively end the prohibition era on crypto, restoring freedom of choice, economic growth, and innovation. https://t.co/w8Rqrnubyj
— Brad Garlinghouse (@bgarlinghouse) December 4, 2024
A pro-crypto SEC might bring a fast conclusion to its case with Ripple and establish a better relationship with the crypto industry.
XRP could bounce off $1.96 support level amid recent decline
XRP declined over 5% in the past 24 hours, sparking $55.26 million in liquidations. The amount of liquidated long positions reached $42.3 million, and short liquidations accounted for $12.96 million.
XRP/USDT daily chart
XRP could bounce off the 14-day Exponential Moving Average (EMA) as it struggles to reclaim the $2.58 level. If the remittance-based token crosses below the 14-day EMA, it could find support near $1.96. This support level also aligns with the 0.382 Fibonacci retracement level.
The Relative Strength Index (RSI) is in the overbought region but trending downward, indicating weakening bullish momentum.
A daily candlestick close below $1.96 will invalidate the thesis and send XRP toward $1.35.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
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