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.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram