- The bear pressure further pushed Ripple below $0.29 before forming lower support at $0.28.
- “I agree that crypto isn’t likely to replace fiat currencies,” Garlinghouse.
Ripple continued to press against key support areas yesterday. The downside momentum was augmented by the broad-based selling pressure in the market. As discussed yesterday, the upside was capped at $0.32 while XRP/USD sustained above $0.30. However, the bear pressure further pushed Ripple below $0.29 before forming lower support at $0.28.
The debate surrounding Facebook’s Libra project has seen the CEO of Ripple Brad Garlinghouse advise the crypto industry to work hand in hand with regulators to guarantee success. In a series of tweets, Garlinghouse said that it unlikely that crypto will take the place of fiat currencies in the financial economy.
“I agree that crypto isn’t likely to replace fiat currencies – I have been very vocal that crypto isn’t likely to disrupt the US dollar and other G20 currencies in my lifetime,” he wrote.
Meanwhile, XRP has recovered stepping above $0.3 as the bull’s push towards the falling wedge pattern breakout. Although movement north is still hampered by the selling pressure, XRP/USD has a positive technical picture as seen on the 2-h chart.
Also Read: Cryptocurrencies are not substitutes for fiat currencies – Brad Garlinghouse
The Relative Strength Index (RSI) is currently horizontal at 46 following a recovery from the levels at 30. At the same time, the Moving Average Convergence Divergence (MACD) is stuck in the negative side but moving sideways at -0.004 in addition to having an inclination to the upside.
BTC/USD 2-h chart source
Ripple’s XRP technical analysis: XRP/USD weekly chart remains largely bearish
- Ripple’s XRP price is trading in the green by some 0.15% in the session on Friday.
- XRP/USD price action via the weekly chart view remains largely tilted to the downside.
- The price is running at its five consecutive weeks trading in the red.
XRP/USD weekly chart
The next major weekly support to the downside is eyed at $0.2000.
XRP/USD daily chart
A bearish pennant can be eyed via the daily, but also a double bottom formation.
Spot rate: 0.2223
Relative change: +0.15%
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Ripple Tries to Dismiss Unregistered Securities Lawsuit
Ripple has made a last-minute attempt to dismiss the lawsuit against the company by filling new documents with the U.S. District Court for the Northern District of California that potentially on Wednesday, Dec. 4 as reported by Coindesk.
According to a new filing from the company Ripple claims the investors who are suing the company for an alleged unregistered securities sale brought their case too late. The filing is apparently the Ripple’s last-minute effort to get the court to drop an amended class-action lawsuit that was filed in August. The hearing is scheduled for January 15th, 2020.
Despite the plaintiff’s claims that Ripple’s engaged in an ongoing offering of XRP which should be considered as securities, Ripple argues that it only began distributing XRP in 2013. Thus, any case brought after the three-year nonclaim statute should be dismissed according to the law.
Ripple’s latest set arguments are predominantly a repeat of what the company stated previously. Apart from the fact that the statute of repose has passed on the case, the company also claims that the plaintiff has not been able to demonstrate any significant evidence that he actually purchased XRP from any of the defendants, either that being Ripple Labs Inc., XRP II, LLC, Bradley Garlinghouse or Ripple’s an initial coin offering. The filing hits at such claims by stating that there was a “one-in-ten-thousand chance” that the plaintiff could have purchased XRP from Ripple or other defendants.
Ripple also questioning the plaintiff’s response, filed Nov. 4, which states “Ripple issues new XRP from escrow for the first time each month for sale to the public.” According to the Dec. 4 filing, by Ripple, this argument contradicts the plaintiff’s original complaint, which suggested that “all 100 billion XRP was created out of thin air by Ripple in 2013, prior to its distribution to investors.” According to the filing, “Ripple’s alleged exchange sales of XRP accounted for .095 percent—less than one-tenth of one percent—of the total volume of XRP sold on exchanges” during the time period Sostack said he bought XRP.
Ripple and Forte Want to Transform Gaming Industry
Ripple partner, gaming company Forte says it’s looking to use XRP and the Interledger Protocol to develop blockchain-based games which will also include XRP tokens as a settlement currency.
In March this year, Xpring an investment arm of Ripple has formed a partnership with Forte with an aim to accelerate the adoption of blockchain technology in games. Ripple and Forte will jointly invest $100 million in companies and projects focused on the development of blockchain-based games that will also utilize cryptocurrency XRP.
In a post on Ripple website, Forte co-founder Brett Seyler stated the company is specifically looking at how the blockchain technology can help companies in the $140 billion industry create free-to-play games with in-game purchase options.
“The free-to-play business model dominates the way games are run now. This model has grown the gaming industry more than any other business model in the last ten years”,
XRP will be a perfect fit for such in-game purchases due to the very low cost of the transaction and its speed.
The difference between traditional games and blockchain games is that the “code and logic of blockchain games could be written in smart contracts and run on blockchains”. The advantages are clear as blockchain technology offers greater transparency and data immutability, thus making games more decentralized and controlled by the gaming community rathert than games being fully under the control of developers.