XRP Bears Continue to Dominate, Price Fails to Reach $0.50 Again

XRP failed to secure its position above $0.50 again. This indicates a stronger selling pressure for the cryptocurrency and a greater selling volume.

Ripple’s legal dispute against the United States Securities and Exchange Commission regarding the alleged unregistered securities sales of the XRP had adverse effects on the coin. Since then, it fell to the seventh position in terms of market capitalization on the leader board. And, XRP buyers couldn’t form a strong enough momentum to drive the prices higher again.

The market-wide recovery of cryptocurrencies managed to minimize the weekly losses of the XRP. However, it is still down by 3.7%. The cryptocurrency has failed to reach the $0.50 overhead resistance again as bears repeatedly assert their dominance in the market.

Caption: XRP price analysis have shown repeated wins for the bears

XRP was trading at $0.449 immediately after the decline, a 1.21% fall over the past day. Moreover, the price kept falling and is now trading at $0.445, down by a total of 2.5%. As of writing, the XRP is holding at a market capitalization of $20.41 billion with a 24-hour trading volume of $2.53 billion.

The daily moving average on the 24-hour char underwent a bullish crossover on March 6 after a short-lived price revival for the coin. Since then, the candles have been stuck between the price ranges of $0.41 to $0.50 despite the rising gauge between the two DMAs.

This is because of the 50-DMA’s resistance to the potential uptrend for the XRP despite repeatedly hovering near higher prices. The greater selling pressure also forced the session to close at a lower price. If the XRP fails to reach crucial price ceilings, support levels could come into play.  

If the bears continue their dominance, the XRP could test supports at $0.413. The next crucial support would be at $0.37, and if the bulls continue to fail in supporting this area, the price could drop to a low of $0.252 because of the lack of crucial supports before that level.

SBI Offers XRP to Shareholders as a Reward Option for 2nd Year

The SBI Holdings, a Japan-based financial services company, recently announced that it would give its shareholders the choice to receive Ripple’s native coin XRP as a reward option for the second year in a row. 

In an announcement last Friday, SBI holdings said that shareholders who hold more than 100 shares could receive at least 2,500 yen, equal to $22.92 worth of XRP. The company says that this is a way for them to show their thanks for their shareholders’ support. The official amount of XRP that will be given to the holders will be determined on June 30, 2021. The shareholders who want to receive this perk have until May 31, 2021 to apply. 

Caption: SBI Holdings offers XRP as a reward for its shareholders.

SBI Holding’s support for the XRP signifies that the cryptocurrency still has a strong fan base in Japan. This is a huge contrast compared to the current position of the cryptocurrency in the United States, where it is currently embattled, and most exchanges have delisted and stopped trading the digital currency.

This is due to the legal dispute that Ripple and two of its executives currently face. The lawsuit was first announced by the United States Securities and Exchange Commission (US SEC). It alleges that the XRP was sold as an unregistered security with the knowing consent of its executives. 

More recently, the SEC and two of the executives found their parties at an impasse, and they submitted a proposed schedule for the briefing of their respective motions to dismiss. Simultaneously, the Ripple vs. SEC case is currently at the discovery phase and is still surrounded by uncertainties. 

Despite this, SBI Holdings, with the partnership of FXCoin Ltd., recently reported that they’re making great progress on the remittance platform they made based on the XRP.  Their recent experiments showed promise after successfully forwarding an overseas transaction using the XRP.

The XRP Is Anticipating a 28% Move According to Price Predictions

Ripple’s native coin XRP is currently dancing on top of a symmetrical triangle and is trading between two critical levels while staying at a sustained $0.45 level. 

Despite the major upswing in Bitcoin’s price last Saturday, the XRP remained unfazed as the market’s great performance barely affected the price of the coin. This also happened when the cryptocurrency market went through a slump, with the XRP remaining in the green, even growing by 0% on the day. 

Meanwhile, the cross-border consolidation for the XRP is most likely to culminate in a significant upswing for the cryptocurrency is a breakout from the symmetrical triangle happens. Ripple is also looking towards a significant upswing to $0.60 for the XRP.

Caption: Price predictions are anticipating a 28% move for Ripple’s XRP.

The XRP, currently well-known as an international remittance token, is trading at a stable level at $0.45 while being squeezed between two key levels. These are the 50 Simple Moving Average (SMA) and the 100 SMA on the cryptocurrency’s 4-hour chart. A breakout is also anticipated above the symmetrical triangle. 

The pattern is forming in a relatively consolidating market and is hinting at either a breakout or breakdown. The breakout could cocker once the price crosses above the upper trend line. However, if the price goes below the lower trend line, a breakdown for XRP’s price will happen.

Notably, as long as the 50 SMA support remains in its place, Ripple XRP will be posed for a 28% upswing and break past the descending trend line. The Moving Average Convergence Divergence (MACD) also hints at the trend turning bullish very soon. If the MACD crosses above the signal, the midline would indicate a huge bullish signal for the cryptocurrency.

However, the same triangle pattern could also result in a major breakdown for its price. If a breakdown happens, the XRP’s anticipated supports would be at $0.40 and $0.35, respectively.

Ripple Acquires Trading Platform Building and Crypto Integration Firm

Ripple, the digital payments giant, appears to be preparing to further expand its network after acquiring an unnamed firm with experience and expertise in building trading platforms and integrating with different cryptocurrency exchanges. 

Recently, XRP researcher Steven Diep uncovered a video entitled “Ripple – Improving our Payment Infrastructure with Blockchain Technology & Data Science. Published in June of last year, it features Jennifer Xia, Ripple’s Senior Data Analyst, and contains news regarding the unnamed firm’s acquisition.

Caption: News about Ripple’s acquisition of a development firm was uncovered.

In the video, Xia says that Ripple has recently acquired a firm with expertise in building trading platforms and integrating with digital assets and cryptocurrency exchanges. This will be essential as they expand the scale of Ripple’s business, enter different markets, and start thinking about engineering a more complex payment strategy. 

Notably, this is not the first clue that hints at Ripple’s plans to make and launch a novel trading platform. Ripple also posted different job listings last year, which indicated that the firm had already planned to engineer a vaguely defined cryptocurrency exchange. 

Moreover, in October last year, Ripple was looking for a senior software engineer for liquidity who would play a key role in “building an enterprise-grade [and] distributed trading platform” capable of providing real-time access cryptocurrency market. 

The firm also sought a liquidity staff software engineer in May of 2020. The company also posted a job listing for an engineering manager at the same time. Both of the job listings had directly mentioned the development of the “enterprise-grade” trading platform on the job descriptions.

However, it is still unclear whether the planned “enterprise-grade” trading platform will be for internal use or accessible to most customers. Regardless, this new platform will definitely help Ripple’s trading issue after being delisted from several major exchanges in the United States.

Ripple XRP’s Possible Recovery Remain Intriguing, Says Analysis

Ripple’s native coin XRP has failed to break the barrier $0.50 and move past it to develop an upside momentum. Despite multiple tries in the past few days, the cryptocurrency has repeatedly failed to get past this target and bounced back and forth to the $0.45 range. Regardless, analysts are still intrigued by the XRP.

XRP/USD traders almost reached the $0.50 resistance level as the market opened. However, they failed to hold the ground, and the price of the token quickly fell back to $0.45. 

Despite this failure, the community still sees this as a plus as the Ripple XRP has stayed mostly unchanged in both since the beginning of the day and on a day-to-day basis. Amidst numerous lawsuits from the United States Securities and Exchange Commission and uncertainties on its classification, remaining at this range is the best the community could hope for.

Caption: Ripple XRP remains at desirable levels amidst uncertainties and lawsuits

Analysts, however, have speculated that the XRP’s recovery towards $0.50 is intriguing. An initial break past this barrier could significantly propel the price of the coin. They noted that the crypto’s daily high of $0.48, once passed, could be the only hurdle keeping it at this level. 

However, the short-term trend remains with the XRP bulls with the technical indicator’s support where the RSI (14) is nearing above the 50-level. This builds consistency for the recently observed recovery from its crash a few months ago. 

The analysis also says that a break past $0.55 and $0.60 levels will push XRP’s price over $0.65. On the other hand, if it fails to push above these resistances, it might break below the channel and lead towards the supports at $0.35, $0.30, and $0.25, respectively. 

Against Bitcoin, the pair is consolidating on the downside and is moving below the 9-day and 21-day averages. However, the bulls from this trading pair have failed to push the price above moving averages.

Ripple Execs and the SEC Have Agreed to Brief Motions to Dismiss

Ripple and the United States Securities and Exchange Commission (US SEC) have agreed on a schedule to brief the motions to dismiss filed by Garlinghouse and Larsen. According to the Ripple executives’ attorneys, both parties have reached an impasse on some of the issues. They cite this as the reason why they are requesting to file a new brief.

The legal battle between the two parties continues to gain momentum as four new documents being published yesterday through CourtListener. Among them is a schedule for the briefing of Brad Garlinghouse’s and Chris Larsen’s motions to dismiss. 

Caption: Ripple and SEC have agreed on a schedule for briefings

Both Ripple executives filed a letter stating their intention to file a motion to dismiss against the amended complaint from the SEC against them. A few days ago, the SEC denied their motions to dismiss based on “scienter liability.” The SEC claimed that the two executives had “avoided knowing that the XRP could be found as a security” so that they could profit from the sales.

In the latest letters, The SEC told Judge Torres, and both of the defendants have agreed on a proposed schedule to brief the individual defendant’s motions to dismiss. The proposal suggests holding the opening briefs on April 21, 2021, the SEC’s brief on May 14, 2021, and the defendant’s on June 4, 2021. 

Furthermore, the executives’ legal teams have filed a motion to file a combined brief of up to 10 pages. This seeks to address “several discovery issues” where they have reached an impasse with the plaintiff. The SEC agreed so long as they are entitled to make a reply brief with the same page limit.

Also, the parties were informed that the counsel for Ripple, Joy Gou, was Judge Torres’ law clerk during the September 2016-September 2017 terms. However, the court doesn’t believe that this may create a conflict, but it would still entertain any requests to reassign the case. 

The SEC’s Lawsuit Could be Catastrophic as Discovery Phase Begins

Ripple’s “fair notice” defense steadily becomes the central point of contention in the early stages of the legal dispute between the company and the United States Securities and Exchange Commission. In the lawsuit, the US SEC claims that Ripple sold the XRP as an unregistered offering. On the other hand, the company argues that there wasn’t a reasonable way to know that the XRP was a security.

In the company’s fourth defense, Ripple wrote that due to the lack of clarity and fair notice about its obligations under the law and the lack of clarity from the Plaintiff’s interpretation of the law, It had no way of knowing that what it did was prohibited.

As Jeremy Hogan, a well-known attorney from the XRP community, explained in a new video, it’s all about the defense. However, if the judge agrees with the US SEC’s recent letters that this defense is “improper,” several arguments from Ripple will be null and void. 

Caption: Judge could void Ripple’s Arguments if SEC’s argument is accepted.

An example would be that FinCEN’s 2015 decision would not matter despite already being issued. Hogan also states that the “Sensation” that the US SEC was already approached by at least one cryptocurrency exchange about the vacant securities status in 2019 wouldn’t matter either. However, the attorney thinks that the approval of this application is unlikely. 

Hogan also says that the US SEC’s recent move shows that the agency is “nervous.”  Since the discovery phase began, Ripple is demanding that the US SEC provide transcripts of conversations with exchanges that mentioned XRP. 

At the same time, Rosalyn Layton expressed her views in an article on Forbes, which mentioned a possible class-action lawsuit against the US SEC because of its misguided decision to sue Ripple. According to her, the newly-elect SEC Chairman Gary Gensler faces a disastrous mistake thaw he needs to sort out as soon as possible.

Ripple Executives Ask Court to Block the SEC’s Request for Records

Two of Ripple’s top executed have asked the court to block the United States Securities and Exchange Commission’s request to access their personal financial records. 

In a letter sent on Thursday to the Southern District Court of New York City, Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen asked Judge Sarah Netburn to nullify the subpoenas sent to several banks seeking their financial information since 2013. 

Notably, the case filed against them is a “non-fraud litigation.” The executives say that the SEC’s move is a “wholly inappropriate overreach” since the case relates to the alleged sales of the XRP as an unregistered security. 

Caption: The SEC wants Ripple executive’s eight years worth of financial information 

More specifically, Larsen and Garlinghouse argue that their personal financials live are not relevant to the case. However, they have already agreed to provide financial information up to a certain extent. They also say that the SEC’s demands violate the Ripple executive’s privacy interests.

The letter sent by the executives says that the individual defendant’s privacy interest is even more powerful here because the subpoenas submitted by the agency is a very obvious intrusion into the personal financial lives of the two. The two also say that the SEC is yet to offer a coherent explanation why it is entitled to this information. 

So far, six banks have been sent subpoenas asking for the financial information of Garlinghouse and Larsen. These are the First Republic Bank, SVB Financial Group, Silver Lake Bank, Federal Reserve Bank of New York, Citibank N.A., and Silvergate bank. 

In December 2020, the SEC made its lawsuit against Ripple and the co-founders known to the public. The lawsuit alleges that the XRP was sold as an unregistered security to its investors. The total alleged unregistered sale is worth over $1.3 billion.

Ripple XRP Faces Selling Pressure as Network Activity Lessens

Ripple’s native coin, XRP, is facing significant selling pressure at the moment. The price of the XRP is at risk of a significant pullback as its selling pressure continues to rise. The number of active addresses for XRP is also at a decline, and the interest in the crypto token seems to have faded away. 

This doesn’t come as a surprise, especially after the constant pressures the lawsuit from the United States Securities and Exchange Commission has caused. The crypto investors appear uninterested in XRP, especially after Ripple’s lack of assurance that the lawsuit will end soon. 

Moreover, the initial and significant spike in the number of active addresses and investors from the January 31 boom caused by the r/WallStreetBets has progressively declined. The metrics show that the XRP sees a current low of 12,000 active addresses per day. 

Similarly, the social volume of Ripple XRP has also seen a decline in the past month and a half, despite the recent bull run that pulled the entire cryptocurrency market. 

Caption: XRP faces significant selling pressure as its network activity slows

On the 4-hour chart, XRP faces a strong resistance level at $0.456, the 100-SMA, and $0.46, the 50-SMA. On the flip side, the next bearish price targets are $0.421 and a low $0.393. However, if the XRP manages to reclaim the 50-SMA and 100-SMA, its price is expected to recover swiftly and rise to $0.495. Breaking out from this point could drive the price up to $0.60.

Despite the significant selling pressure for the XRP, it had notably performed well last week. The crypto stayed on the green and started a slow recovery, and challenged different resistance levels as the whole crypto market going through a slump.

Regardless, numerous members of the crypto community closely monitor Ripple and the SEC’s legal battle, as this would bring clarity throughout the crypto industry and possibly the recovery of the XRP.

Ripple Could Force the Classification of XRP and Give it a New Hope

Ripple could file a motion on the current classification of its native coin XRP at any time before the discovery phase is complete. And, according to Jeremy Hogan, Ripple plans to do exactly that. This move will ensure that the escrowed XRP persists, and they could continue business as soon as possible.

In a new video, Jeremy Hogan, a well-known attorney in the XRP community, says he uncovered a “new hope” for the XRP and its community. He says that this is a “super important litigation strategy that Ripple may implement” amidst the legal battle it faces against the United States Securities and Exchange Commission.  

Caption: Attorney Jeremy Hogan says that Ripple plans to classify XRP

Notably, the US SEC has jurisdiction over the trading, buying, and selling but not holding securities within the United States. This means that a security can only come into the US SEC’s jurisdiction if the digital asset was classified as a security at the time of sale. However, each sale must be considered individually, as circumstances may change. 

When the XRP was sold, Ripple must have advertised the cryptocurrency with expectations that its value would increase as a direct result of its activities. This means that the key factor would be whether and, if so when Ripple was the primary driver for the price of its native token at any given time. 

Hogan echoed a statement from SEC Commissioner Hester Peirce in his video, where she emphasized the underlying 1946 case and said the issue was a manner of the sale.  In this regard, Jeremy Hogan went through previous correspondence between Ripple and the SEC and concluded that this might precisely be its strategy. 

Most notably, Hogan said that Ripple’s last letter established an affirmative defense and that there was no likelihood for future violations. On the other hand, the SEC’s position would be that all Ripple sales since 2013 must be viewed as a large sales offering and bring out KiK interactive case to support their claims.