The daily price of the Ripple (XRP) coin saw an increase of 2.86%. Starting from a 24-hour high price of $0.4545, the coin plummeted to a 24-hour low of $0.4237. The price of XRP has been on a gradual upward trajectory since the establishment of the daily low. At the time of writing, XRP is trading hands $0.4487 apiece.
The technical indicators for the cryptocurrency stand at neutral position. Eight of the oscillators are giving out a neutral signal while two are at buy and one is at sell. Of the Moving Averages the sell and buy indications are at seven each while one is at a neutral position.
Daily Forex Trader has identified the cryptocurrency in an ascending channel formation. The coin is expected to fluctuate but within the channel. Per the pro trader, XRP is likely to be headed for a break out to the upside from the channel formation. An optimistic price target of $0.75 has been set.
Four major developments you should know about XRP
- SEC filed a lawsuit on 22nd December 2020 that caused XRP price to plummet to $0.25
- Formal response of Ripple Labs on 1st February resulted in a price hike of $0.72
- Pump and dump attack had the coin lose half of its value
- Ripple’s strong defense in retrial conference on 22nd February led to bullish market sentiment
1.SEC filing of lawsuit
Ripple XRP has had a rollercoaster ride over the past few months. In December last year, the SEC announced the filing of a lawsuit against the company which led to the coin suffering heavy losses. The SEC announced a lawsuit on 22nd December 2020 against two executives – Co-founder Christian Larsen and former CEO Bradley Garlinghouse – allegingthat the company had been misleading investors while trading the coin as an unregistered security. $1.3 billion worth of coins has been traded in such a manner.
The lawsuit kicked out XRP from the bull run that the rest of the cryptocurrencies were enjoying. XRP was stuck in the price range of $0.20 to $0.30. XRP’s market was dominated by short sellers and with such high bearish pressures on the coin, it was unable for XRP to pull up its price.
2.Ripple Lab’s formal response
However, good news came for XRP holders when Ripple Inc. submitted their formal answers in response to the SEC’s lawsuit. Ripple accused the SEC of distortion of facts and baseless allegation claims. The major defense of the company was the fact that as a cryptocurrency, XRP, lies outside the jurisdiction of the SEC. The response of the company shifted the XRP market sentiment to bullish and the coin achieved a high price of $0.72. However, the XRP quickly became a target of a pump and dump attack. The lawsuit has caused XRP to be delisted from many major exchanges, thinning the liquidity of the coin greatly. Speculators drove up the price of the coin only to short XRP by a massive sale-off. The attack on XRP was successfully and resulted in around 50% value loss for the coin. XRP plummeted to a price of $0.35.
3.The pretrial conference
The pretrial conference that took place on 22nd February made it clear that the SEC has no plans of reaching a settlement with Ripple Labs. The conference also showed the strong defense that the company has. A holy grail piece of information was also uncovered by Ripple Labs. It was revealed that to an anonymous inquiry of a major exchange asking whether XRP is a security, the SEC did not reply with a “yes”. This was a setback for the SEC and drove up the price of XRP to $0.64.
4.Class action against MoneyGram
Struggle seems to be endless for the world’s fourth largest cryptocurrencies. In a tangle of lawsuits, another one has been added to the list. MoneyGram had previously suspended its strategic partnership with Ripple Labs because of the legal troubles and now is facing a lawsuit itself because of XRP. A class action has been filed against MoneyGram by Rosen Law Firm
Currently, the price of the cryptocurrency appears to have reached the pre-lawsuit levels and has stabilized in the range of $0.40 and $0.60.
What is Ripple?
Ripple Labs is the organization behind the platform, Ripple, and the cryptocurrency, XRP. The organization was founded by Jed McCaleb and Chris Larsen in 2013. The platform facilitates the transactions of financial institutions with XRP acting as intermediary between currency exchanges. XRP also has the potential to become a mass-adopted digital currency because of its low transaction costs and high speed of transactions.
Ripple has its own patented consensus algorithm and unlike Bitcoin or other major cryptocurrencies, XRP does not need to be mined. The total supply of the cryptocurrency is pre-mined and Ripple Labs control it. The appeal of cryptocurrencies lies in their decentralization which has led to the supply restriction by Ripple Labs becoming a source of controversy for XRP.