According to the World Economic Forum (WEF), Ripple Labs (XRP) has been accepted as an official partner.
This is a major step forward for Ripple, as the WEF is a well-known organization with a global presence. Ripple aims to increase its exposure and promote its technology worldwide through this new partnership.
In partnering with the blockchain firm, the WEF stated that “Ripple is doing for value what the internet did for information: enabling its instant and seamless flow around the world.” They also emphasized how “Ripple is developing and enabling future use cases that will catalyze the new digital economy for governments, businesses and consumers.”
In spite of this important show of support, XRP is still in a clear downtrend ; this can be seen easily on a year-over-year chart where bears are definitely in control. In fact, on Aug. 18, the token took a dive of 10% from $0.3621 down to $0.3367—and more downside is possible.
On a monthly basis, and before the Aug. 18 dump, Ripple’s native token had been nicely consolidating in a sideways channel between the $0.3934 and $0.3628 range, giving traders reason to believe that maybe a retest of the $0.40 was on the way.
Obviously, this did not happen as the market’s bias on the coin remains bearish, suggesting a retest and perhaps even a break below the $0.33 point. So, unless the bulls start to mount a significant defense at XRP’s current $0.3360 trading price, a breakdown below that level is highly probable. If that occurs, XRP may plunge towards its previous support of $0.31; conversely, if bulls maintain their position above $0.33, we could see XRP attempt to reclaim its previous resistance at $0.35.
SEC v. XRP
The digital asset XRP is caught in the middle of a legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple, the company behind the asset. The SEC has accused Ripple of selling unregistered securities, and the case is now in court. In fact, it has been since Dec. 2020.
Both sides have their arguments, and the case will likely have major implications for the cryptocurrency industry as a whole. Those who support Ripple argue that XRP is not a security and that the SEC is overreaching. They believe that the case could set a precedent that would stifle innovation in the industry.
On the other hand, the SEC argues that Ripple violated the law by selling unregistered securities. The agency believes that Ripple knew that what it was doing was illegal and that it should be held accountable.
The outcome of this case will likely have major implications for the cryptocurrency industry, so it is definitely one to watch.
At the time of writing, the $16.5 billion market cap XRP was trading at $0.3357, down 2.80% on the day.
Disclaimer: This article is provided for informational purposes only. It is not intended to be used as investment or financial advice
Disclaimer: This page contains affiliate links. If you choose to make a purchase after clicking a link, we may receive a commission at no additional cost to you. Thank you for your support!