Early on Wednesday, Ripple’s XRP appears to be posting somewhat of a recovery, reclaiming the key $0.90 mark and making its way higher but is expected to continue trading range-bound until the sentiment in the wider crypto sector strengthens further. At the time of writing, XRP/USD is trading around $0.91.
The subdued mood in the crypto market continues to weigh on almost all digital currencies, ever since China came down hard against all kinds of cryptocurrency transactions, forcing even offshore companies in the space to stop servicing China-based users. This caused a severe dip in trading volume, raised uncertainties about the future of the crypto market and weighed on the mood of global investors, keeping many away from the market. The risk-averse mood became even more strong after investors moved away from riskier instruments like equities as well in the US markets over rising worries about government debt.
On the legal front, despite rumors of a settlement, the fight continues between Ripple and the SEC, opposing each other’s moves in the court. The latest development comes from the SEC side which has submitted a letter opposing the company’s most recent request for the addition of three more documents to the upcoming in-camera review being performed by Judge Sarah Netburn. The documents contain vital information related to the agency’s discussions about digital assets with law firms as well an email chain with a third party concerning guidance from the SEC on its digital asset under the agency’s framework.
Latest Fundamental Developments in Ripple’s XRP
On the fundamentals front, Ripple’s XRP has not been as busy as some of its leading peers in the market, but could enjoy some support from multi-channel payments technology firm Novatti’s expansion into the Southeast Asian markets in partnership with Ripple Labs. Novatti recently announced an entry into the Thailand market, using XRP to process cross-border payments in a fast and effective manner.
In addition, RippleX – the company’s branch focusing on developing more use cases on the XRP Ledger, recently announced the first wave of XRPL grants valued at over $2 million. Among the most interesting recipients of the grants are projects looking to develop NFTs for multiple industries, which could mean that the sixth largest cryptocurrency could soon expand into the exciting NFT space.
Several analysts have also offered a bullish outlook on Ripple’s XRP in the coming sessions, including Altcoin Daily’s host Austin Arnold who forecasts a rally on the back of interesting developments as the lawsuit progresses. A similar view has been shared by the CEO of Real Vision and Global Macro Investor, Raoul Pal, who maintains that XRP has several use cases and offers great potential for risk-reward. He expects the lawsuit to end with Ripple paying up a fine and being allowed to continue operating its XRP crypto in the market.
Key Levels to Watch
Technical analysis of the H4 price chart of XRP/USD reveals a strong bearish bias among moving averages and the MACD. Although, the momentum indicator points to some buying interest as well.
Ripple’s XRP is holding under the pivot point at $0.95 but is sitting comfortably above the immediate support at $0.85. Further bearish pressure can see a test of this level while a confirmation of trend reversal can happen once the pivot point is overtaken.