Will Ripple’s XRP Manage to Hold Above the $0.80 Level?
Ripple’s XRP continues to be consolidating just above the $0.80 level although it has slipped below the $0.85 mark, with buyers staying away from the cryptocurrency owing to the overall sentiment and its ongoing legal woes. At the time of writing, XRP/USD is trading at around $0.824.
With all eyes firmly fixed on the SEC vs. Ripple lawsuit, there have been no significant developments giving any reason for buyers to hop onto the XRP crypto, which has recently slipped to the eighth position in terms of market capitalization. Amid a growing demand for stablecoins in the crypto market lately, XRP lost one position in the rankings to USD Coin (USDC).
Meanwhile, some of the latest news surrounding the lawsuit may offer some hope to the XRP Army – the cryptocurrency’s community of holders and supporters. Empower Oversight, a non-profit focused on government oversight, has initiated legal proceedings against the SEC, alleging a conflict of interest in the way it went after Ripple.
Will Empower Oversight’s Lawsuit Against the SEC Drive Buying Interest in Ripple’s XRP?
The non-profit organization has sued the agency for its failure to comply with the Freedom of Information Act (FOIA) as it refused to divulge details on communications between its senior officials and details about the crypto holdings of its former and current employees. The lawsuit calls out the SEC for terming Ripple’s XRP as an unregistered security even as it granted non-security status to its key rivals like BTC and ETH.
What’s even more interesting is that Empower Oversight’s charges reveal how former SEC Chair Jay Clayton previously declared BTC as a non-security and drove its price higher before leaving the agency to join a crypto hedge fund One River Asset Management. This firm deals exclusively with investments in Bitcoin and Ethereum.
Meanwhile, there could be some volatility in the market around XRP soon, especially as markets try to absorb the news of an alternative XRP2. The blockchain project based on the open-source XRP Ledger is being considered as a complete fork, stating that while the XRP will focused on bank and government use, XRP2 will focus on P2P and transactions by the general public. Let’s keep our eyes on how this one plays out in the coming weeks.
XRP/USD Technical Analysis
On the 4-hour chart of XRP/USD, moving averages as well as the momentum indicator paint a strong bearish picture in the market for now. However, the MACD suggests some presence of buyers as well.
Ripple’s XRP holds under the pivot point at $0.841 but is sitting comfortably above the immediate support at $0.747 for now. The cryptocurrency’s price needs to hold above the key $0.80 mark as a breakdown of this level can drive further panic selling and see XRP test the support level.
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