XRP price eyes $0.70 target, attorney states Ripple’s influence on the altcoin is on a decline
- XRP price hits a peak of $0.65 on Saturday, the altcoin has sustained above $0.63 on Monday.
- Attorney Bill Morgan pointed out that Ripple’s influence on the altcoin is declining gradually as its store of XRP reduces.
- Downward pressure on XRP price is likely lessened by Ripple’s escrow of nearly 55% of the total possible supply.
XRP price climbed to a new 2024 high of $0.65 on Saturday and suffered a minor pullback to $0.63, early on Monday. The altcoin has sustained above the psychologically important level of $0.60 amidst developments in the SEC v. Ripple lawsuit.
Attorney Bill Morgan, a Ripple proponent, believes that it is likely that Ripple’s influence on XRP price declines as its store of the altcoin reduces. Further, the escrow set up by the payment remittance firm could make XRP supply more predictable, likely reducing negative impact on XRP price.
Also read: XRP price jumps to $0.62 while Ripple faces pressure from two legal battles
Daily Digest Market Movers: Ripple’s influence on XRP price could reduce slowly
- XRP price sustained above a key psychological level of $0.60 and established a new yearly high over the weekend.
- Attorney Bill Morgan commented on the Ripple-related court documents circulating on social media platform X, and stated how the payment remittance firm’s influence on XRP price is likely on a gradual decline.
- The crypto expert cites two reasons for the decline, the first being Ripple set up an escrow where the firm locked nearly 55% of XRP supply to make it predictable. This is as per the data on XRPLedger’s official website, updated nearly a month ago.
- The blog reads: “To provide additional predictability to the XRP supply, Ripple has locked 55 billion XRP (55% of the total possible supply) into a series of escrows. These escrows are on the ledger itself and the ledger mechanics, enforced by consensus, control the release of the XRP.”
- The second reason is that Ripple’s XRP holdings are on a gradual decline and as the payment remittance firm’s XRP reserves diminish, its influence on the altcoin could reduce further.
I am not downplaying or dismissing the evidence you refer to. It speaks for itself. I am pointing out the evidence in the case is not new. It is a part of the evidence the SEC used in support of certain of its arguments about Ripple buttressing the price of XRP. If people are… https://t.co/9boVqeHn07
— bill morgan (@Belisarius2020) March 4, 2024
- Key deadlines for the SEC v. Ripple lawsuit are the regulator’s opening brief deadline of March 22, 2024. This is the amended deadline after the SEC requested the court for an extension.
Technical Analysis: XRP price could rally to $0.70
XRP price is currently in an uptrend, the altcoin hit a new 2024 high of $0.6501, on March 2, as seen in the chart below. The altcoin is likely to rally towards its December 2023 peak of $0.7000. XRP price needs to flip resistance at $0.6501 into support to rally to its $0.7000 target.
The Moving Average Convergence Divergence Indicator (MACD) and the Awesome Oscillator (AO) both support XRP’s recent gains and the bullish thesis for the altcoin.
XRP/USDT 1-day chart
XRP price could find support at the 78.6% Fibonacci retracement of its rally to its new 2024 peak, at $0.6148, in the event of a decline in its price. A daily candlestick close below the 78.6% Fibonacci retracement could invalidate the bullish thesis for XRP price.
Ripple FAQs
What is Ripple?
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.
What is XRP?
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.
What is XRPL?
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.
What blockchain technology does XRP use?
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.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
