There has been a great insight into Ripple vs. SEC case provided by Australian lawyer Bill Morgan. Also, Ripple has launched its liquidity hub for easy conversion between fiat and crypto, a core pain point for several exchanges, DEXes, and liquidity pools.
Let us analyze the news and its impact on XRP’s price.
Less than a week ago, on April 13, 2023, Ripple launched its liquidity solution, the Liquidity Hub. This platform would serve as a source of both crypto and fiat currencies to facilitate easy transfer between them.
This step is expected to be very helpful in a scenario where rising interest rates are sucking the US Dollar liquidity out of the markets. The $2 trillion which was injected by the US FED is primarily for banks and is expected to have little impact on retail markets.
Companies, exchanges, OTC desks, and liquidity pools can get US Dollars and cryptocurrencies, such as Bitcoin, Ethereum, etc., from these deep liquidity pools when in need. However, there was no mention of the XRP, which might be because of Ripple Labs’s ongoing battle with the SEC.
For XRP to be considered a security, it is essential for the SEC to prove that there was some expectation of profit for the initial buyers. However, keeping XRP divorced(at least on paper) from the liquidity pools would show that XRP buyers do not expect any profit through the actions of Ripple Labs.
This brings us to the second development.
Ripple’s Win Looks Closer Due to This Argument
Pro Ripple Lawyer Bill Morgan gave a very interesting argument in Ripple’s favor. In its case against the SEC case, Ripple can either win or lose.
He said that if Ripple goes to trial, in the event of a legal defeat in the lower court, they could pass the challenge posed by the Howey Test by arguing that Ripple and XRP can run mutually exclusive of each other. Ripple does not need XRP to function as in the case of its Colombian Land Records, and similarly, XRP does not need Ripple Labs as it can be taken off the chain to, say, BNB Chain or Ethereum’s Blockchain.
It’s great evidence for trial if the matter goes to trial that Ripple products don’t need XRP and the XRPL & XRP can function without Ripple using XRP in all of its particular products. XRP holders shouldn’t be concerned. They don’t expect profits from Ripple’s efforts. https://t.co/As55VirOD2
— bill morgan (@Belisarius2020) April 16, 2023
XRP Price Analysis
Based on these two fundamental developments, we can conclude that Ripple is growing stronger. But to buy it profitably, you need to buy at good levels, or your profits will not maximize.
We have used technical analysis to check whether there are any opportunities to buy XRP at current levels.
We have used daily charts to capture the essence of long-term trends.
XRP’s price has been hovering around $0.5 since March 26, 2023. The price has remained stuck between $0.33-$0.52 since last year. However, recently there was a price break above $0.52.
Considering technical indicators, the levels look attractive to buy. But the current chart looks weak and should be avoided for a while.
- RSI is getting weaker.
- MACD has shown a negative crossover.
- Volumes are shrinking.
However, buying would be profitable once XRP crosses $0.52. Being major resistance, if XRP crosses $0.52, it can go as high as $0.86 within a few weeks.
Stop loss: 0.50
In the event that XRP fails to cross $0.52 and begins to fall below $0.48, it can be shorted for the target of $0.34.
Short Target: $0.33
Stop Loss: $0.52
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