Like most crypto assets, the Ripple price is in red, paring losses with the greenback on the last day but down 22 percent week-to-date.
Weighing down XRP and Ripple is the United States Securities and Exchange Commission (SEC) lawsuit. The subsequent hearing in the coming days may also affect some of Ripple’s core businesses—most notably, On-Demand Liquidity (ODL).
Ripple’s Roadmap for 2021 Disrupted
The SEC alleges that XRP is a security.
Accordingly, most exchanges halted the coin until there is clarity.
Meanwhile, MoneyGram finds itself in a hard place. After partnering with Ripple receiving its investment, giving it a new lease of life, the money transfer giant has now suspended its relationship with Ripple—the firm behind ODL, not Ripple Labs—the official issuer.
A few days after the SEC lawsuit, MoneyGram said they were not using XRP to move value. Their partnership involved using XRP in Ripple’s ODL corridors, especially the United States and Mexico tunnel.
MoneyGram places their Relationship with Ripple on Hold
On Friday, the company placed its relationship with Ripple on hold. Therefore, it won’t receive its development fees in Q1 2021 after receiving $12 million from Ripple in the same period last year.
Since the beginning of their association, Ripple has been paying MoneyGram to use XRP as an agent in value transfer. Last year alone, it received $61 million from the blockchain-leveraging financial company.
Consequently, with the financial taps drying up and Ripple finding itself at a tough spot, MoneyGram’s Chief Financial Officer (CFO) will have a challenging task filling in the expected hole.
Ripple Price Prediction
The Ripple price is trading within a bear breakout pattern with sharp, double-digit losses in the previous trading week.
From the daily chart, sellers are in control, judging from the alignment of sell bars and the lower BB. The banding suggests strong momentum of sell pressure.
Considering that XRP/USD is trading within a bear breakout pattern within Feb 1 bear candlestick, every high may be another opportunity to sell. This prognosis is from an Effort versus Results analysis. The failure of bulls to add to their gains and break $0.65 pours cold water on the uptrend.
On the flip side, losses below $0.35, the 78.6 Fibonacci retracement level of Nov 2020 trade range—and the low of Feb 21 bear bar, could see the XRP slide back to $0.20—or Jan 2021 lows. This will confirm sellers of Feb 1 and 21.
Chart Courtesy of Trading View
Disclosure: Opinions Expressed Are Not Investment Advice. Do Your Research.
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