XRP Price: How XRP Stands To Lose With Ripple’s Shift To USDT For ODL
Highlights
- Ripple makes changes to the ODL service, with a subsidiary in Singapore for non-US customers.
- The ruling in the Ripple Vs. SEC lawsuit could negatively impact XRP’s position in the market.
- XRP price stays above $0.52 after correction from weekly highs of $0.5662.
XRP price is trading within a lethargic atmosphere characterized by constricted lock-step price action on the upside and profound movement downwards. The cross-border money remittance token although up a modest 1.1% in the last 24 hours, has lost 0.5% of its value in the last hours to $0.52. This mundane technical picture is reflected across the board, with Bitcoin price struggling to defeat resistance at $64,000 and Ethereum price hovering between $3,100 support and $3,200 resistance.
Is XRP Price Doomed Amid Ripple’s Regulatory Woes?
Disclosures by Ripple, the company that issues XRP, have revealed the tectonic shifts in the network known for its role in blockchain-based cross-border payments.
As the case between Ripple and the SEC enters the homestretch without much promise of a win for XRP, the blockchain startup is making structural changes to its On-Demand Liquidity (ODL) service, especially for its clientele in the US.
Ripple is adopting the largest stablecoin USDT to be used by its US clients, according to a recent filing the court. In other words, Ripple has faced ODL customers. However, a subsidiary of the company based in Singapore is currently in charge of ODL clients. This outlook was shared by Moon Lambo, a YouTuber.
Ripple President Monica Long says they don't have any ODL customers. According to Ripple's latest filing, a Singaporean subsidiary has ODL customers using $XRP, but Ripple itself does not. Would an injunction to stop's Ripple's ODL apply to Singaporean subsidiary? If not, then as…
— Moon Lambo (@MoonLamboio) April 25, 2024
The move is believed to have been necessitated by last year’s court ruling which deemed institutional XRP sales securities. As such, Ripple faces a $2 billion SEC proposed penalty for violating US security laws.
Moving forward, Ripple has distanced itself from the sale of XRP in the US but it is indirectly engaged in similar sales with non-US firms. US-based firms have been transitioned to use USDT, bringing currency transactions.
According to Bill Morgan, a lawyer and digital asset enthusiast, the move ought to be of concern to XRP. He argued on X that “Those saying it does’t matter because XRP itself has clarity are underestimating the adverse consequences for XRP and the XRPL ecosystem of a broad permanent injunction that stops Ripple’s ODL or stops use of XRP in ODL.”
Holders of XRP seem worried ahead of the ruling in the lawsuit heading to trial. Some have say that they are ready to exit, doubting whether Ripple’s potential move from the US would be impactful.
If Torres rules on a permanent injunction on the ODL- I am out. The damage it could cause to Ripple’s business is a risk I don’t want to wave through. Sure they can potentially sustain the business outside of the U.S., but it’s not a gamble I plan to play ::sigh::
— Sherrie 🌸 (@CherryEmpress21) April 24, 2024
Can XRP Price Resume The Uptrend?
XRP price holds support at $0.5254 on Friday during US trading hours. The token rose to $0.5664 this week after Bitcoin halving. However, resistance highlighted by the 50-day Exponential Moving Average (EMA) and the 200-day EMA (red and purple lines on the chart) capped the gains.
The Relative Strength Index (RSI) position at 39 indicates that sellers are majorly in control. If the downtrend into the oversold region continues, the path of the least resistance will remain downwards in the short term and perhaps trigger losses below $0.5.
On the other hand, holding above $0.55 or closing the day above $0.52 immediate support may encourage bulls to push for a falling wedge breakout with the potential to blast the price of XRP to $0.7 and subsequently narrow the gap to $1.
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