Ripple XRP and other cryptocurrency assets are in the red as they experience paring losses against the US dollar. Every crypto asset went through a loss this week, with the XRP finding itself down 22% since last week.
This coin weighed down further by the United States Securities and Exchange Commission (SEC) lawsuit against Ripple and two of its top executives. The court hearings in the coming days may also affect the Ripple’s core business, especially its On-Demand Liquidity (ODL). This is because of the SEC’s claim that the XRP is a security.
Numerous exchanges have already stopped trading the Ripple XRP on their platform until it finds clarity regarding its classification. Most recently, MoneyGram also announce that they will not use the XRP for its cross-border transactions for the first quarter of 2021.
Caption: Cryptos are in the red and XRP got it worse
After partnering with Ripple and receiving the company’s investment and getting a new lease in life, the money transfer giant suspended its relationship with Ripple, the firm behind the On-Demand Liquidity service, and not the Ripple Labs, the issuer of the partnership.
A few days after the SEC amended their initial lawsuit against Ripple, MoneyGram said they will no longer use the XRP for cross-border transactions. This partnership used to involve using the XRP through Ripple’s ODL to transfer money to different countries with added security and reliability.
These things contributed to XRP trading within a bear breakout pattern, where the sellers are in control on the daily chart. Judging from the alignment of the sell bars and the lower BB, it suggests a strong momentum of sell pressure for the coin.
Considering the bearish pattern the coin is showing, every high from now will be an opportunity for XRP holders to sell their assets. But, if bulls fail to regain the token’s previous high at $0.65, it would be disastrous for the token, and could even slide the XRP back to $0.20.