XRP hovers above $0.50 as Ripple joins alliance to simplify recovery of digital assets


  • Ripple and XRPL Labs have joined the DeRec Alliance as founding members. 
  • The DeRec Alliance brings Web3 firms together to work on the recovery of digital assets in a secure manner across wallets. 
  • XRP tested support at $0.50 on Thursday, exchanging hands at $0.5174 on Friday. 

XRP trades around $0.5174 early on Friday, wiping out gains from earlier in the week, as Ripple announced it has joined an alliance to support digital asset recovery alongside Hedera and the Algorand Foundation. 

The other key catalyst influencing XRP price, which is testing critical support at $0.50, is the lawsuit that Ripple faces against the Securities and Exchange Commission (SEC) vs. Ripple over whether the sales of XRP to institutional investors are considered an unregistered sales of securities. The two parties have filed their motions, opposing motions and supporting evidence in the remedies phase, and now await a ruling on the penalties to be imposed on Ripple for this alleged violation of securities laws. 

Daily Digest Market Movers: Ripple and XRPL Labs join alliance to support blockchain recovery

  • Cross-border payment remittance firm Ripple announced on Thursday that it has joined an alliance (DeRec alliance) alongside Algorand Foundation and Hedera to support the recovery of digital assets in a secure manner. Ripple and XRPL Labs have joined as founding members and hold a two-year seat on the Technical Oversight Committee (TOC). 
  • The firm will provide input on the alliance’s governance structure and offer input on core policies to make the recovery of digital assets, accounts, passwords and other data, as simple as in Web2 ecosystems.
  • The other market mover for XRP price is the lawsuit between Ripple and the SEC. The latest development in the legal battle is that the two parties have filed their motions, reply briefs and opposition to replies in the remedies phase. XRP holders await the court’s decision on the SEC’s demand for $2 billion in fines and Ripple’s counter of $10 million. 

Technical analysis: XRP is likely to sweep liquidity at $0.46

The XRP price has fallen 2.7% so far this week, but it has maintained above the key support of $0.50, which aligns with a psychological level. Amid the sideways trend that Ripple has experienced in the last few weeks, momentum indicators can give clues about the next likely move.

Two important momentum indicators give contradictory views in XRP’s case. The Relative Strength Index (RSI) falls to around 40 in all three major charts (weekly, daily and 4-hour), suggesting that bullish momentum appears to be waning. However, the Moving Average Convergence Divergence (MACD) indicator shows green histogram bars above the neutral line, signaling a positive momentum in XRP price trend.

If selling pressure persists, Ripple is likely to suffer an 8% correction and sweep liquidity at the weekly support level at $0.4665 seen on April 19. Two key levels that have been respected since mid April stand out on the weekly time frame– support at $0.4665 and resistance at $0.5630. 

XRP

XRP/USDT 1-day chart 

A daily candlestick close above $0.53, the 50% Fibonacci retracement level of the decline from April 9 top of $0.6431 to the April 13 low of $0.4188, could invalidate the bearish thesis. In such a case, XRP would face the next resistance at $0.5630, the weekly resistance level set on April 6. 

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.

 


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.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin price steady above $65,000 as Hermetica launches BTC-backed USDH on layer 1

Bitcoin price steady above $65,000 as Hermetica launches BTC-backed USDH on layer 1

Bitcoin trades slightly up at the time of writing on Wednesday, rising by 0.14% at $65,158 after closing above the daily resistance level of $64,913 the day before. On-chain data indicates that BTC is undervalued, and US spot Bitcoin ETFs recorded inflows totaling $422.50 million on Tuesday.

More Bitcoin News

Bitcoin rally catalyzes gains in Ethereum, Solana, and XRP, as traders digest Donald Trump incident

Bitcoin rally catalyzes gains in Ethereum, Solana, and XRP, as traders digest Donald Trump incident

Crypto market capitalization increased nearly 4% in the last 24 hours and climbed to $2.522 trillion on Wednesday, as seen on CoinGecko. Almost all cryptocurrencies ranked in the top 10 assets by market capitalization have rallied in that period.

More Cryptocurrencies News

Ontology Gas sets for a rally as technicals show bullish divergences

Ontology Gas sets for a rally as technicals show bullish divergences

Ontology Gas price broke out above a descending parallel channel pattern, indicating a potential bullish momentum ahead. The bullish divergence observed on the RSI and the Awesome Oscillator indicators further suggests a likely reversal and upward trajectory for ONG in the days ahead.

More Cryptocurrencies News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin surpasses $65,000 mark

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin surpasses $65,000 mark

Bitcoin (BTC) closes above the daily resistance level of $64,900, with Ethereum (ETH) and Ripple (XRP) subsequently breaking through their resistance levels, indicating an emerging bullish trend.

More Cryptocurrencies News

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin (BTC) stabilized around the $57,000 mark this week, while the German Government persists in transferring Bitcoin to exchanges. Concurrently, US spot Bitcoin ETFs have recorded inflows.

Read full analysis

BTC

ETH

XRP