- The prevailing weakness of the US dollar also gave a push to the already rising prices of ADA/USD
- The SEC vs. Ripple case has been going on since 2020, and rumors are that the case will be closed by April 2022
- ADA/USD closed at $1.3057, after setting a high of $1.3068, and a low of $1.1862. ADA/USD extended its gains on Wednesday
The whole market mood turned positive with the support provided by Bitcoin. The leading cryptocurrency had been declining over the previous week, which had a negative impact on the overall market mood. Thus, Ripple and Cardano followed suit. Now that Bitcoin has found a little support, the market mood has eased and paved the way for other tokens to move higher.
Ripple (XRP/USD) Daily Outlook
The XRP/USD closed at $0.79788, after placing a high of $0.80681, and a low of $0.75762.
XRP/USD surged for another session on Wednesday and recovered some of the previous losses, amid the improved market mood. According to Fox Business journalist Eleanor Terrett, the US SEC versus Ripple case will be pushed back a month, due to the rapid spread of the Omicron variant. According to Terrett, the motion will be filed on January 13.
The SEC vs. Ripple case has been going on since 2020, and rumors are that the case will be over by April 2022. Earlier this week, Ripple opposed the SEC’s fair notice defense and filed a motion to strike the action from the SEC after the agency cited the out-of-circuit decision in the case against Fife. Ripple’s lawyers argued that the Fife case was not relevant to the SEC’s allegations against it. However, after Ripple opposed the SEC’s fair notice defense, the prices of XRP saw some upward momentum.
Furthermore, the prevailing weakness of the US dollar also added to the upward pressure on XRP/USD, as they share a negative correlation. For example, the US dollar was struggling to find support after the release of the not-so-surprising CPI report on Wednesday. Investors were waiting for this report, and the figures aligned with the projections. This disappointed the investors, as they had already priced in those figures. This disappointment led to the selling of the greenback.
Cardano (ADA/USD) Daily Outlook
ADA/USD closed at $1.3057, after setting a high of $1.3068, and a low of $1.1862. ADA/USD extended its gains on Wednesday, moving up to its highest level in 7 days, amid positive ecosystem developments.
Over the weekend, the Cardano Foundation said that its restoration effort, using the Cardano blockchain, had reached its first goal of planting over 1 million trees. According to the CEO of the Cardano Foundation, Frederik Gregaard, the Cardano Forest is 100% funded, and they have reached the 1 million tree milestone. The trees planted will be recorded on the Cardano blockchain for enhanced transparency. The data will also serve as a public record of land restoration activities.Given the transactional data, a large amount of ADA was dedicated to restoration. One wallet exchanged about 100,000 ADA for 100,000 TREE tokens and became the biggest donor for the cause. The amount is worth over $118,000. Other large donors exchanged amounts ranging from 5,000 ADA to 87,500 ADA. The land restoration and local ecosystem development activities will occur in around Mombasa, Kenya.
The founder of Cardano, Charles Hoskinson, has summarized the network’s progress, saying that it went from nothing to becoming a Top 10 project and a significant force in setting the research standard for Proof-of-Stake. Hoskinson was pleased with Cardano’s progress, and said that with over 100 exchanges, 2 million people, 130 dApps being built, and 2 million assets issued on it, the network has grown significantly. These comments by the founder of Cardano put upside pressure on the prices of ADA/USD.
Furthermore, the prevailing weakness of the US dollar also gave the already rising prices of ADA/USD a push. The greenback was low on board on Wednesday, after the release of the CPI report. Though the report came in line with the projections, it failed to lend any strength to the US dollar, as investors had already priced in the event. As a result, the declining price of the US dollar pushed ADA/USD higher, as the two have a negative correlation.
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