The price of XRP has basic incentives: Here is the reason for Ripple 50 % breakdown
The price of XRP lost the momentum that was late last year. Ripple remained in a wide range between decisive support at $ 2 and the resistance point at $ 3.40 this year. It does not move in a well -defined direction and has a risk drawing head and shoulders. This article is looking at some of the best incentives that may affect the price of XRP in the short term.
Coiplation against the SEC case
The first main catalyst may pay the price of the highest XRP is a possible settlement between Ripple laboratories and the Securities and Stock Exchange (SEC).
This settlement stems from a case that started in 2020 when SEC Ripple Labs was accused of crimes that stem from the sale of the distinguished code for 2013. The agency requested a fine of $ 2 billion from the company.
In a ruling, the judge said that XRP was not safe, which is positive for Ripple laboratories. However, the judge indicated that increasing the capital from investors was illegal and a fine of $ 250 million, which resumed the Supreme Education Council.
Therefore, there are signs that SEC, under Donald Trump, will end the lawsuit. Moreover, it has already ended lawsuits against other senior players in the encryption industry, such as Coinbase, Kraken, Gemini, Opensea, and UISWAP.
The end of this case will be a good thing for the XRP price because it will allow Ripple Labs to deal with other financial services companies such as banks and money transfer companies. Many of these companies were afraid to deal with Ripple because of their luggage.
With the passage of weeks and months, I wonder increasingly whether all rumors about the settlement, the constant uncertainty about the end or continued resumption of the Sec and the resumption of SEC V Ripple will increase in increasingly negative pressure on the price of XRP.
Ripple aims to be an applicable fast competitor
The end of the lawsuit will also help the company to achieve its goal of being an applicable competitor for Swift, the community that connects banks worldwide. The Swift messages platform deals with more than 150 trillion dollars a day.
Ripple sees an opportunity to create a unique system that treats payments either directly or using the XRP code.
Banks are likely to prefer Ripple because they are a faster payment method, and do not require cash and cheaper movement. The treatment costs less than $ 5, while Swift costs more than $ 50, depending on the amount.
Xrp etf possibilities
Another catalyst for XRP ETF is that ETF’s immediate approval by the Securities and Stock Exchange Committee has increased in the past few months.
Polymarket data shows that participants have an 80 % chance to agree to funds by companies such as Grayscale, Canary and Wisdomtree.
XRP ETF will be a good thing for its price because it will lead to more demand from institutional investors. JPMorgan estimates that this money will attract more than $ 8 billion in flows.
Total factors and ripples
Other macro factors may affect the price of XRP. The most prominent of which is the potential stagnation in the United States. The recession will be good for the price of XRP and other metal currencies for encryption due to the impact on the federal reserve.
Historically, the FBI’s reaction to these risks was by reducing interest rates. For example, interest rates were reduced during the epidemic, which led to high encryption and stock rates.
XRP price expectations
All of the above are positive stimuli for the ripple price. However, there is a risk of all pricing them by market participants.
Other risks are that the price of XRP has a head and shoulder on the daily chart. His head is at $ 3.4, while the right and left shoulders are at $ 3. The neckline moved to $ 1.9.
Therefore, the step below the neck line at $ 1.9 will lead to more from the downside, and perhaps to the psychological point at $ 1, which is less than 55 % less than the current level.
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