Ripple’s digital asset XRP, after being hit by SEC charges, has continued to dip, defying all technical indicators.
The XRP price plunged by over 61 percent after claims by Brad Garlinghouse regarding a potential lawsuit. Additionally, the SEC announced it had pressed charges against the company and several officials. In the last seven days, the coin has plunged by 61.4 percent.
The price plunged from $0.6 and now sits bellow $0.2. Further downside is likely to occur, given the current market momentum.
Indications present a point where the coin could return to its previous price level ($0.6). However, it needs to overcome certain resistance points. Some XRP investors still believe that the coin can hit $1 before January 2021.
A bit difficult, but not necessarily impossible, according to Crypto Bull, a popular XRP analyst. He says that there is a perfect cup and handle developing on the XRP chart.
— Crypto Bull🚀 (@CryptoBull2020) December 25, 2020
XRP withstands test of time
According to past happenings, XRP has always survived when Ripple or the coin gets in trouble. Many speculators have questioned Ripple’s XRP “offering”, accusing the firm of manipulating the asset’s price.
However, the strength of SEC’s lawsuit would require public disclosure on behalf of the firm in question. IOHK CEO Charles Hoskinson pointed out, “A lot of facts are going to come out into the open domain because of this event.
He specifically states that how much Ripple has sold, who they sold to, business conducted, internal and external statement are things that should be made public immediately.
Hoskinson also notes that regulations would tighten if XRP was a security trading on the crypto market in the last eight years.
What is next for XRP?
Analysts are questioning the future of XRP, especially as exchange platforms are delisting/suspending the coin.
OSL, Beaxy, and CrossTower have either temporarily suspended XRP trading or removed it entirely. Bitwise Asset Management has liquidated its XRP position in a further blow, it said in a statement. Reportedly, Coinbase, America’s largest crypto firm, said it would suspend trading XRP by January 19, 2021.
According to their website, Ripple, developers of XRP, have over 300 financial partners across the world. Many of these partners are established multinational firms like MoneyGram, Standard Chartered, and Santander, among others.
On Thursday, MoneyGram announced that although the lawsuit against Ripple does not affect them, the company will adopt a wait-and-see approach to determine if it would have to discontinue its partnership with Ripple. Other firms may follow this lead by example.
Frances Coppola, an XRP critic, called it the beginning of the end. Similarly, Blocdesk reported how the SEC lawsuit had left the crypto community divided regarding XRP’s label: is it a security or an asset?
Ripple stands tough against all odds
The CEO said they would fight back the SEC lawsuit highlighting that the SEC is fundamentally wrong as a matter of law and fact. He says XRP is a currency and does not have to be registered as an investment contract as SEC claims.