Ripple’s XRP is one of among to most efficient
coins in the market; even though their current engagement with the Ripple vs. SEC case has
been suppressing the price of the coin, XRP is expected to skyrocket after the case settles
down, will the price of the coin hit a two-dollar mark? Stick to the end of the video to know
more. HI Vaulters! Glad you can join us today, and
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Before beginning with the video, we’d like to give you a small disclaimer; we are not
a financial adviser. This is not financial advice; you are requested to do your own research
before investing in the market. With that being said, let’s get to it.
Usually, getting tangled up with a lawsuit is tedious and not favorable for any company,
but in the matter of Ripple, the suit against the United States Securities Exchange Commission
has benefited Ripple to a great extent. XRP is the native cryptocurrency of Ripple Labs,
which has been designed to assist the financial mainstream money flow. To the point of today’s
video, XRP’s price is certainly going to skyrocket after the lawsuit because of the
SEC's claim against the company, Ripple has started to lose out on its strength, and Ripple’s
defenses against such claims are strong enough to turn the case in favor of Ripple.
Ripple’s XRP has been running through a positive potential catalyst in the market,
which has added to the existing push factor to the price of the coin. In today’s video,
we will look at XRP’s latest updates on the lawsuit, the potential catalyst persisting
in the market, and lastly, an analysis of the coin’s price.
Last year in December, SEC filed an action against the company, Ripple, and its two executives,
alleging that the company and their executives were selling XRP as unregistered security
and raised over 1.3 billion dollars through such unregistered, ongoing digital asset securities
offering. The claim laid that from the beginning of 2013, via XRP’s sake in unregistered
security offering to investors in the US and globally by the company, Ripple has allegedly
distributed billions of XRP in exchange for non-cash considerations. To such allegations,
Ripple filed a motion of denial. Since then, the primary question of fact that remains
unsettled before the Court of law is whether XRP is a security or not.
This question itself
pointed out a high possibility of Ripple’s win because XRP follows and works on a blockchain
technology that is only applicable for digital currencies, proving that XRP is indeed a digital
currency wasn’t a tough job. For the same, Ripple filed a motion to check into SEC’s
discussion records of cryptos, which was allowed by the court. SEC, in turn, asked for Ripple’s
legal advice dated 2012 to establish legal records pertaining to XRP’s sale under the
States Securities laws. Ripple has been winning minor orders continuously, and recently it
has won an order, which makes Ripple’s win on the case an implied action. Judge Sarah
Netburn denied SEC’s motion on the ground that Ripple has not waived off the confidential
relationship. Maintaining an attorney-client relationship, investigating such Ripple’s
legal communications is unacceptable as that would violate attorney-client privilege. Apart
from this, Ripple’s fair notice defense against the SEC is a constitutional right,
and it seems that SEC is having a hard time breaking through it.
XRP’s potential catalyst XRP has been hovering around the potential
catalyst zone. One such catalyst has been created by our very own Doge Father, Elon
Last month, the Tesla boss announced that Tesla would no longer accept Bitcoin
as the mode of payment because Bitcoins use a high amount of fossil fuel, especially coal,
for its mining and transaction. He also affirmed that meanwhile Tesla would be looking for
other altcoins to replace bitcoin as a mode of payment. This news gave a heavy blow to
the entire crypto market. Within two hours, Bitcoin’s price dropped 17%, and bitcoin
was seen to be trading in the range of 35,000 dollars. On top of this, China issued a regulation
among its banks and financial institutions to restrict trade in cryptos. All these resulted
in the crypto market dripping down; even XRP was impacted and continuously traded red for
two to three days. However, the positive part here is, XRP might likely become a mode of
payment at Tesla because, addressing Musk's environmental concern, XRP is the most efficient
cryptocurrency in the entire market to use the least amount of energy for transactions.
Firstly, all XRP coins are already mined, requiring another set of energy consumptions.
Secondly, XRP’s blockchain ledger is best suited to transfer money globally, running
parallel to the CBDC’s network.
XRP consumes 0.079 Kilowatt-hours of energy for one transaction,
which is 57,000 times less than Bitcoin’s 707 Kilowatt-hours of energy consumption per
transaction. Since Elon Musk believes in a sustainable way of leaving, XRP is the ideal
candidate who might become a potential payment method for Tesla.
Apart from this, the world economic forum has accepted Ripple’s XRP as the best solution
for settling cross-border payments. The IMF has called for a new Bretton Woods movement,
most likely to discuss the new economic model; with the spiraling rumors and suggestions
on taking in cryptos as a part of such a model, XRP has the highest acceptance possibility
of becoming the talk of the conference. No other coin has this much level of support
from the financial institutions as XRP has. In a recent survey report, banks and many
other financial institutions have pointed out XRP’s affordable and fast money transferring
system and the drawback of the current SWIFT network. Many banks have already replaced
XRP with the obsolete SWIFT network. With the world economic forum’s positive comment
on Ripple's XRP, most banks are influenced to use XRP’s blockchain technology. It is
certain that in the case of merging cryptocurrencies with the mainstream market, XRP will have
the upper hand.
The more significant number of financial institutions accepting XRP increases,
the more surge in the trading volume and the price of the coin will be impacted. With being
globally accepted as a payment currency, XRP will become equally valuable to bitcoin or
even surpass bitcoin’s worth because of its extreme scarcity.
Ripple has been working on increasing XRP’s partnerships and strengthening the company’s
internal pillar. The company has appointed the 43rd US Treasurer, Rosie Rios, as a board
of directors member. Kristina Campbell, a renowned executive, previously working at
fintech green dot and paynearme, has been appointed as the company’s Chief Financial
officer. This addition to Ripple’s team has a highly positive impact on the company
in the long run. Especially when Ripple’s CEO has officially announced that Ripple will
be public after settling the SEC lawsuit. In an interview, Brad Garlinghouse, Ripple’s
CEO, has confirmed that Ripple is planning to list its shares from the beginning of 2020;
however, it paused due to the lawsuit’s emergence.
The plan is likely to start soon
after the case ends. This indicates Ripple's substantial grounds and its likelihood to
win the suit. XRP’s price predictions
As of 3rd June 2021, XRP is seen to be trading with a green of 3.41% at the price of 1.04
dollars; after the recent dip to 80 cents, the coin’s price has successfully recovered
and has touched its weekly high at 1.10 dollars. The XRP’s technical chart has been showing
a formation of a cup and handles indicator. This is a very bullish indicator, which assures
a breakout soon after the formation is created. The cup with the hand has a measured move
target of 1.58 dollars on the four-hour chart. If the handle formation is completed at the
1.10 dollar range, the formation will likely yield a 40% return.
The indicator has been
consistent with its break our pointers; the more even the cup and handle are, the more
exponential break out is likely to be seen. The current targeted price of the indicator
is kept at 1.53 dollars. However, the decline of the 200 four-hour SMA at the 1.27 dollars
range will cause the price curve to fall if XRP fails to maintain the buying pressure.
According to the April-May decline, the crucial breakout points are 1.15 dollars with a 38.2%
retracement level; the next pointer is at 50% retracement level at 1.30 dollars, and
the third is at 1.46 dollars with 61.8% retracement. The Daily active address has dropped to 8,098,
an 83% fall compared to the last high at 49,657, indicating a massive shrink in the daily interaction
with the coin; this makes a likelihood of the coin not making out well after the complete
formation; the prices of the coin can alter, and slip below the 50 four-hour SMA at 95
cents, which can further go down to 80 cents battling heavy selling pressure. However,
we are still bullish on XRP as most investors await the Court’s Judgement, which we expect
to be in favor of pushing XRP's price.
With this, we have come to the end of the
video; thank you for watching. Let us know in the comments below what you
think the price of XRP will be after the SEC Lawsuit? Make sure to subscribe to the channel.
Take care, Vaulters, of pushing, and see you next time on the XRP Vault..