Ripple likely to hit $0.66 target alongside bullish developments in XRP utility

3 November 2023

in XRP

Reading Time: 4 mins read

Ripple announced Dubai Financial Services Authority’s approval for XRP usage within the financial centre.
Ripple price is in an uptrend; the altcoin is poised for a 12% gain in the XRP rally.
XRP on-chain activity climbed throughout October, implying impending volatility in the asset’s price.

Ripple price sustained above the $0.59 level, on Friday, close to its $0.62 local top. On-chain indicators reveal a rising demand for XRP tokens among market participants. Rising trade volume and daily active addresses are indicative of brewing interest among traders.

21Shares files S-1 application for an XRP ETF

1 November 2024

Ripple CEO optimistic about crypto post-election, regardless of outcome

24 October 2024

The altcoin yielded 10.70% gains over the past month. The altcoin has been in a consistent uptrend for the past three days. The US Federal Reserve’s interest rate decision failed to sway the bullish outlook of retail traders and XRP price continued posting gains.

[crypto-donation-box]

Also read: Ripple makes comeback to $0.60 after XRP held by retail traders notes a significant increase

Daily Digest Market Movers: XRP price sustains above $0.60, eyes $0.66 target

XRP price sustained above $0.60 on Binance since October 31. XRP holders’ outlook remained bullish, supporting the asset’s gains.
Whales transactions valued at $100,000 or higher surged in November, signaling incoming volatility in XRP price.
Whale transaction count climbed 106% in November, according to Santiment data.

Whale transaction count (>$100,000) vs XRP price

While whale activity is typically associated with profit taking, a correction in XRP price is less likely with bullish catalysts driving the asset higher.
Daily active addresses in XRP stayed above the 19,500 mark between October 31 and early on Friday.
XRP trade volume climbed from 1.51 billion to 2.60 billion, between October 31 and November 3, an increase of 72.84% within four days.

XRP trade volume, daily active addresses vs XRP price

Dubai Financial Services Authority opens doors to Ripple

Payment remittance firm Ripple announced that the Dubai Financial Services Authority (DFSA) has approved the digital asset XRP for use within the Dubai International Financial Centre (DIFC).

Virtual asset firms within the DIFC will now be able to incorporate XRP into their virtual asset services. XRP is the first virtual asset to be approved by the regime. Bitcoin, Ethereum, and Litecoin rank in the list of assets previously approved under the DFSA’s virtual assets regime.

The legal and regulatory clarity is likely to benefit XRP. The asset will be used by institutions located in the DIFC for value exchange, boosting its utility.

Technical Analysis: XRP price could rally 12% if this occurs

XRP price is $0.5980 on Binance at the time of writing. As seen in the price chart below, there is a Fair Value Gap between $0.6682 and $0.6758. The lower level, $0.6682, is expected to act as a resistance for the altcoin as the XRP price rally continues.

The bullish developments in XRP are likely to support the asset’s uptrend. A successful break past $0.6682 will send XRP to the upper boundary of the FVG, at $0.6758. The move from $0.5980 (current price) to $0.6682 (FVG) marks a 12% gain from the current price.

XRP/USDT one-day price chart on Binance

On the downside, the 10-day Exponential Moving Average (EMA) at $0.5769, could act as a support.

SEC vs Ripple lawsuit FAQs

It depends on the transaction, according to a court ruling released on July 14:

For institutional investors or over-the-counter sales, XRP is a security.
For retail investors who bought the token via programmatic sales on exchanges, on-demand liquidity services and other platforms, XRP is not a security.

The United States Securities & Exchange Commission (SEC) accused Ripple and its executives of raising more than $1.3 billion through an unregistered asset offering of the XRP token.

While the judge ruled that programmatic sales aren’t considered securities, sales of XRP tokens to institutional investors are indeed investment contracts. In this last case, Ripple did breach the US securities law and will need to keep litigating over the around $729 million it received under written contracts.

The ruling offers a partial win for both Ripple and the SEC, depending on what one looks at.

Ripple gets a big win over the fact that programmatic sales aren’t considered securities, and this could bode well for the broader crypto sector as most of the assets eyed by the SEC’s crackdown are handled by decentralized entities that sold their tokens mostly to retail investors via exchange platforms, experts say.

Still, the ruling doesn’t help much to answer the key question of what makes a digital asset a security, so it isn’t clear yet if this lawsuit will set precedent for other open cases that affect dozens of digital assets. Topics such as which is the right degree of decentralization to avoid the “security” label or where to draw the line between institutional and programmatic sales are likely to persist.

The SEC has stepped up its enforcement actions toward the blockchain and digital assets industry, filing charges against platforms such as Coinbase or Binance for allegedly violating the US Securities law. The SEC claims that the majority of crypto assets are securities and thus subject to strict regulation.

While defendants can use parts of Ripple’s ruling in their favor, the SEC can also find reasons in it to keep its current strategy of regulation by enforcement.

The court decision is a partial summary judgment. The ruling can be appealed once a final judgment is issued or if the judge allows it before then. The case is in a pretrial phase, in which both Ripple and the SEC still have the chance to settle.

Credit: Source link