Ripple CEO Brad Garlinghouse Strengthens His Legal Team
The price of Ripple (XRP) surged above $0.90 on July 13, largely due to growing optimism among traders after favorable developments in the ongoing Ripple lawsuit. Judge Torres ruled in favor of XRP in its case against the U.S. Securities and Exchange Commission (SEC). However, it is important to note that the battle for regulatory clarity is not over, as the SEC is expected to appeal the decision to the 2nd Circuit.
In a 2020 lawsuit, the SEC accused Ripple and its executives of selling unregistered securities. XRP is used by Ripple’s customers to facilitate cross-border payments, but the controversy revolves around whether XRP constitutes an investment contract—a specific class of security regulated by the SEC. Ripple asserts that it has never entered into an investment contract with an XRP buyer, while the SEC argues that Ripple’s sales of XRP should have been registered.
Ripple CEO Brad Garlinghouse remains optimistic about the case, but recently he has bolstered his legal team amidst the ongoing dispute with the SEC. Rahul Mukhi, a partner at Cleary Gottlieb Steen & Hamilton LLP, filed a notice of appearance on behalf of Garlinghouse on Sept. 25. Mukhi, who specializes in securities, complex litigation, and enforcement, will represent Garlinghouse’s interests in court.
Despite Ripple’s victory in July, many in the crypto community remain cautious about the lawsuit’s outcome. Since July 13, XRP’s price has dropped, and for the bulls to make a comeback, the price needs to break above the immediate resistance at $0.60. Some crypto analysts also believe that XRPL Labs’ plans for a significant upgrade to the XRP Ledger could have a positive effect on XRP’s price.
XRPL Labs Plans Major Upgrade to XRP Ledger
XRPL Labs envisions creating an ecosystem where businesses can scale, individuals can earn rewards for their contributions, and the community can thrive sustainably. The planned upgrade is not just about improving infrastructure; it’s a strategic move to revamp the XRP Ledger foundation and could be a positive development for XRP. Wietse Wind, the founder and CEO of XRPL Labs, commented:
“This is, without a doubt, the most monumental upgrade to the XRPL infrastructure since its inception, marking a pivotal moment in our pursuit of a healthier, sustainable XRP Ledger. This upgrade will allow all users, including businesses and individual contributors, to operate and leverage their private infrastructure.”
Additionally, a significant positive development for Ripple is that HSBC users can now pay their mortgage bills and loans using XRP via FCF Pay. HSBC, one of the world’s largest banking and financial services firms, serves millions of customers globally, and this development will likely increase XRP’s utility.
On the downside, there has been a significant decline in whale transactions for XRP in recent months. When whales (transactions worth $100,000 or more) reduce their activity, it typically signals a loss of confidence in the coin’s short-term prospects.
Furthermore, many analysts anticipate market turbulence due to concerns about a potential recession and macroeconomic uncertainties. The U.S. Federal Reserve may keep interest rates at high levels for an extended period, which negatively impacts stocks and cryptocurrencies. Higher interest rates make fixed-income investments, like bonds, more attractive compared to riskier assets like stocks and cryptocurrencies, potentially leading to a decrease in XRP’s price.
Ripple (XRP) Technische Analyse
Ripple (XRP) has declined from $0.94 to $0.39 since July 13, 2023, and the current price stands at $0.50. XRP may struggle to stay above the $0.50 level in the coming weeks, and if the price breaks below this level, it could likely test the $0.40 price point.
Key Support & Resistance Levels for Ripple (XRP)
From the chart (starting April 2023), I’ve identified significant support and resistance levels that can help traders predict price movements. Ripple (XRP) remains under pressure, but if the price rises above $0.60, the next target could be resistance at $0.70. The key support level is at $0.45, and a break below this would signal a “SELL” and open the path to $0.40. If XRP drops below $0.40, another critical support level at $0.30 may come into play.
Factors That Could Drive Ripple (XRP) Price Upward
Sentiment in the cryptocurrency market can significantly impact XRP’s price movement. The ability of XRP to hold above the $0.45 support level is encouraging and could set the stage for a price rebound. A rise above $0.60 would benefit the bulls, allowing them to take control. Additionally, the planned upgrade to the XRP Ledger by XRPL Labs could positively affect XRP’s price, and any favorable developments in the Ripple case against the SEC may also lift XRP’s value.
Indicators of Continued Decline for Ripple (XRP)
The decline in Ripple (XRP) can be driven by a variety of factors, including market sentiment, regulatory news, technological progress, and broader economic conditions. The last several weeks have been challenging for XRP, and investors should take a cautious approach as the macroeconomic environment remains uncertain.
The drop in whale transactions for XRP signals that large investors may be losing confidence in the coin’s short-term outlook. If whales continue to divert funds to other assets, XRP’s price could experience further drops in October 2023. Currently, XRP is holding above the $0.45 support, but a breach below this level would suggest that the price could test the critical $0.40 support level.
Inzichten van analisten en experts
While some analysts believe that XRPL Labs’ upgrade plans could have a positive impact on XRP’s price, they advise a defensive investment approach in the coming weeks. If the U.S. central bank maintains high interest rates, this could further pressure cryptocurrencies.
In the weeks ahead, market sentiment, regulatory developments, and macroeconomic factors will continue to influence Ripple (XRP)’s price. The cryptocurrency market is highly volatile, so it’s important to conduct thorough research, stay informed about market trends, and understand the risks involved in cryptocurrency investing.
Disclaimer: Cryptocurrencies are highly volatile and may not be suitable for all investors. Never invest money you cannot afford to lose. The information provided is for educational purposes only and should not be construed as financial or investment advice.
