- XRP price observed nearly 2% weekly losses and slightly declined to $0.5031 on Wednesday.
- Ripple has requested the court for a one-week extension of the February 12 deadline.
- Experts weigh in on whether Ripple’s On-Demand Liquidity corridor has traction in the US and Asia.
XRP price sustained above the psychologically important level of $0.50 even as payment giant Ripple requested to push the deadline for remedies-related discovery in the SEC lawsuit. The cross-border payment remittance firm seeks to push the deadline from February 12 to 20, according to a court filing.
Daily Digest Market Movers: Ripple requests deadline extension, experts speculate whether ODL is relevant
- Ripple is currently faced with two major obstacles, the ongoing SEC lawsuit and On-Demand Liquidity corridor’s utility and relevance in the US and Asia.
- The latest development in the SEC v. Ripple lawsuit is the payment remittance firm’s application to push the deadline to February 20, according to the court filing below.
- If the request is accepted, the deadline will be extended further and the lawsuit will go on for longer than expected by market participants.
- Ripple’s On-Demand Liquidity (ODL) corridor is a key product for banks and financial institutions, experts are now weighing in on whether this is as relevant as the ecosystem.
- Crypto expert and founder of dizercapital observed in a recent tweet on X (formerly Twitter) that Ripple had limited traction for their payments/ settlements use case in the US.
- It seems that Ripple’s use case does not have as much traction in Asia either.
- Ripple’s original use case was to serve as a bridge currency to offer institutions a cost-effective way to exchange crypto and fiat. However, bridging assets with XRP carries a risk for institutions, this has discouraged many firms from adopting XRP’s original use case.
- There are several developments on the XRPLedger (XRPL) with little to no traction for its primary use case and this is concerning to market participants.
We knew Ripple had limited traction for their payments/settlements use case in the U.S. But it looks like even in Asia, that traction is not much better.
I hope this is wrong and simply just FUD, but unless I see evidence to the contrary, it seems XRP’s future is in all the… https://t.co/5qL9jD0ZL4
— Yassin Mobarak (@Dizer_YM) February 6, 2024
Technical Analysis: XRP price is at risk of correction
XRP price is currently in a downtrend, as seen in the price chart below. The altcoin opened 2024 at a peak of $0.6410, since then XRP price has formed lower highs and lower lows. XRP price could plummet to support at $0.4856 before bouncing towards the bearish imbalance zone between $0.5392 and $0.5445.
Once the gap is filled, XRP could continue its decline. The Awesome Oscillator (AO) is flashing its fifth consecutive green bar however the Moving Average Convergence/ Divergence (MACD) indicator notes little positive momentum. XRP price is therefore at a risk of correction.
If XRP price breaks past the imbalance zone, it could face resistance at the 50% Fibonacci Retracement level, at $0.5633, of its decline between January 3 and 31.
XRP/USDT 1-day chart
A daily candlestick close above the resistance at $0.5272 could invalidate the bearish thesis for XRP price.
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.