Recently XRP saw unwavering support from the cryptocurrency exchange Uphold. The support was further echoed by a known law expert Deaton and Coinbase’s Chief Legal Officer, Paul Grewal, despite Coinbase having delisted the cryptocurrency in January 2021, shortly after SEC filed charges in Dec 2020.
XRP Gets Moral Support From Uphold and Law Experts
Uphold tweeted in favor of XRP, showing its commitment to cryptocurrency. The tweet read that Uphold has never delisted XRP, a veiled comment towards its other industry peers like Coinbase, which delisted the cryptocurrency a month(Jan 2021) after SEC filed charges against Ripple Labs(in Dec 2020). Other exchanges that delisted XRP were OkCoin and Crypto.com.
PSA: Uphold never delisted $XRP 😎
— Uphold (@UpholdInc) April 4, 2023
Interestingly XRP got support from Coinbase’s Chief Legal Officer, Paul Grewal, who tweeted to show his opinion that XRP was neither an investment nor a contract, the two terms which were used by US Congress and vetted by the US Supreme Court in a judgment, popularly known as the Howey Test.
Another crypto expert, John E Deaton, who runs a law firm dedicated to such cases, said he challenged SEC in his Amicus Brief in the SEC vs. XRP case. He also noted that the SEC could not cite a case where there was no contact between the promoter and the buyer of the securities.
I issued a challenge to the SEC in the amicus brief I filed. I told the judge the SEC could not cite one case in American jurisprudence EVER that found an investment contract between an investor who had zero contact or privity with the promoter. The SEC ignored the challenge.
— John E Deaton (@JohnEDeaton1) April 5, 2023
XRP Price Analysis
Ripple has witnessed a strong support near $0.5. Let us check through price analysis if there is a possibility of a higher price movement.
On Daily Charts, it has confirmed that the zone of $0.35-$0.4 is a zone of strong support. The price range of $0.55-$0.65 is acting as a resistance which is becoming a hurdle for upwards price movement.
As per Technical Analysis, the chart looks moderately strong because of the following:
- RSI is showing a strong price momentum after it cooled down from the levels of 75 which was overbought zone.
- MACD is showing a neutral stance and might move in favour of the price movement.
- Volume has been largely positive and there are net buyers in overall markets.
- Strong support zone of $0.35-$0.4 acts as a good level to accumulate further.
Target and Stoploss
However, there is a small hurdle at $0.65. If this is crossed then the ultimate target is $0.86. However, since there is a large event(case proceedings), we advice keeping a strict stoploss at $0.35.
What Should Investors Do?
XRP is a good asset if one wishes to keep in their portfolio. The cryptocurrency has implemented its banking algorithms XRapid which helps institutions get on-demand liquidity and helps settle transactions using the Ripple blockchain. Ripple Labs has also partnered with several countries including Colombia to use its blockchain. Colombia uses Ripple’s blockchain to digitize its land records.
XRP being the native token of the blockchain would surely det a surge in demand if this adoption continues.
At current levels, XRP looks attractive if the case turns in the favour of Ripple Labs. Even if XRP loses the case, then they have the ability to appeal to higher courts which might ultimately rule in its favour due to the precedence of the judgement which resulted in the Howey Test. Further, growing adoption of blockchain technology would definitely be in its favour because it is a pioneer and a well known largecap cryptocurrency.