- XRP price rebound is one of three 30%+ gains in April.
- Daily Relative Strength Index (RSI) did not reach an oversold level on Sunday.
- On-chain metric MVRV signaled that a bounce was imminent.
XRP price quickly overcame the April downtrend with an explosive 30% rally yesterday, but the follow-through today has slowly faded. Price compression related to yesterday’s gain will contain additional gains in the short-term, but new developments in the SEC case could override the chart technicals at any time.
XRP price validation comes with higher volume totals
The MVRV metric shows the average profit/loss of all coins currently according to the current price. More specifically, ‘MV’ stands for market value and describes the market capitalization. The second component is ‘RV,’ which stands for realized value.
This metric tends to rise during strong and long bull runs and decreases during bear markets. The rationale is that during solid bull runs, the long-term holders determine when the bull run will end by selling their positions. During bear markets, the long-term holders are at a loss on average, and the short-term holders manage to realize profits.
The current reading is 27.35%, up from the -2.3% on April 24-25. The metric did not reach the lows of February at -11.40%, but it highlighted that the decline had put Ripple in undervalued territory.
At the current reading, the cross-border remittances token is far from the overvalued conditions that matched the November 2020 high, the January high, or the high this month, hinting at more upside for XRP price moving forward.
XRP MVRV ratio (30d)
Last week Ripple closed down 26.41%, the largest weekly loss since the SEC charged crash in December 2020 of 49%. It yielded a total decline of 55% for the international settlements token from the April high.
XRP price responded with a 30% gain yesterday, but today’s follow-through has faded quickly at the 50% retracement of the April decline. More resistance can be expected at the 61.8% retracement at $1.55 and the 78.6% retracement at $1.73.
The prominent levels in the crosshairs are $2.00 and the 61.8% retracement of the 2018-2020 bear market at $2.08.
XRP/USD daily chart
The path for Ripple is more complicated than most cryptocurrencies at the moment, with the overhang of the SEC case against key executives regularly headlining media reports. A positive outlook will remain the best approach unless the descending trendline from the April high at $1.15 fails. After that, the big $1 is the final arbitrator over whether XRP price falls to $0.80 or not.
XRP Lawsuit: SEC aims to make XRP skip the bull run with an Expert Discovery Extension Appeal
The latest update in the XRP lawsuit saw the SEC file a letter requesting the Court to extend the expert rebuttal report deadline to November 12, 2021, and the expert discovery deadline to January 14, 2022, from the former date of November 12, 2021. The plaintiff noted that the extension will allocate both parties sufficient time to prepare rebuttal reports and depose a minimum of 14 expert witnesses.
Ripple Opposes SEC extension appeal to save XRP from an isolated bear run
While consenting to the extension of the rebuttal report deadline until November 12, Ripple opposes the January 14 deposition deadline to avoid the case from stretching long enough for XRP to entirely miss the bull run. Furthermore, Ripple also intends to file an opposition to this letter motion on October 18, 2021.
The SEC offered a compromise to Ripple, preponing the expert discovery extension to December 22, but the defense has rejected that offer as well. Ripple argues that the extension would “would likely impact the briefing schedule for summary judgment motion[s].”, as post-December 10, 2021, the Thanksgiving holidays will commence the holiday season.
SEC supports extension appeal with pending motions
The SEC objects that the case is even less ready for summary judgment motions as expert discovery has commenced with an incomplete factual record. The commission noted that on September 1, 2021, Magistrate Judge Netburn granted the SEC’s motion to compel Ripple to produce certain instant messages among its employees, but Ripple has not completed its production of responsive documents and has not provided any timetable by which it will be complete. Along with the incomplete discovery of a granted motion, the plaintiff states that the parties have a total of four pending discovery motions before Magistrate Judge Netburn. The plaintiff claims that even if one motion is granted, the parties will require an additional extension to proceed with the discovery.
“If Magistrate Judge Netburn grants any of the pending motions to compel, at minimum, the parties would need additional time to review and produce the documents at issue…The SEC’s proposed extension is fair and reasonable under the circumstances and should be granted for good cause.”, stated the SEC.
XLM May Get in Trouble If XRP Deemed a Security: XRP Researcher
A researcher from the XRP community believes that XLM and Stellar may get in trouble should the SEC deem XRP a security
Researcher Leonidaz Hadjiloizou has posted a tweet, in which is asks the opinion of the XRP community about which side in the Ripple-SEC legal battle the company’s co-founder and former CTO Jed McCaleb would take, if he were to do it.
According to Hadjiloizou, should the SEC win and XRP is deemed a security, then Jed and his company Stellar which he created as a rival to Ripple will be in for hard times. If the court rules that XRP is a security, then McCaleb broke the law by selling these potentially unregistered securities – 9 billion of them that he received from Ripple as compensation as part of the Settlement Agreement.
What is most likely? Jed testifies as an expert witness for Ripple or the SEC?
PS1:If he believed XRP is a security then he broke the law by selling unregistered securities after the lawsuit was filed.
PS2:XLM might get in trouble if XRP is deemed a security on a technical lvl.— Leonidas (@LeoHadjiloizou) October 16, 2021
Besides, Hadjiloizou says that if XRP is announced a security, then the native token of Jed’s Stellar, XLM, may also get in trouble and, perhaps, face similar accusations.
So far, no legal action has been filed by the SEC against Jed McCaleb, even though he co-founded Ripple Labs together with Chris Larsen. The latter and the CEO Brad Garlinghouse, along with Ripple Labs, are the defendants in this legal case of the SEC against Ripple.
Jed has been selling his 9 billion XRP in parts, however, he has not sold any coins since September 1.
Ripple Shifts 33.8 Million to Huobi in Past 2 Weeks, After Allocating 100 Million XRP for It
Ripple fintech firm has sent almost 40 million XRP to Huobi since October began from the 100 million allocated for it in the first place
Data provided by the analytics platform Bithomp that works with XRP transactions, over the past eighteen days, Ripple distributed ledger tech provider has shifted 33,805,080 XRP to the major digital exchange Huobi.
One third of Ripple’s 100 million XRP shifted to Huobi
This amount of crypto equals to $38,790,225. The size of weekly transactions has been changing since September 29, when Ripple allocated a whopping 100 million XRP lump to be sent to Huobi in regular transfers – it started as 1,542,780 XRP, continued as 2,309,580. So far, Ripple is moving 1,911,150 XRP lumps to Huobi.
The exchange has recently announced its withdrawal from mainland China and by December 31 it plans to stop crypto trading against CNY.
XRP becomes number one choice for UK retail investors
At the time of writing, the sixth largest cryptocurrency, XRP, is changing hands at $1.15, showing a mild rise of 2.54 percent, as per the data provided by CoinMarketCap.
As reported by U.Today earlier, a recent report by a leading trading platform eToro stated that the majority of retail crypto investors in the UK now prefer XRP as their top asset. Cardano’s ADA is the second favorite.
Ripple Labs has recently joined the Digital Pound Foundation to help UK authorities work the CBDC they are developing – digital pound sterling.