Ripple will stay true to its plans to go public if the company succeeds in the legal case against the SEC, said SBI Group’s CEO.
Should Ripple prevail in its ongoing legal battle against the SEC, the payment processor will join the trend of crypto-related companies going public, said the CEO of SBI Group – one of the largest shareholders in the firm.
During an earnings presentation call, SBI Group’s CEO, Yoshitaka Kitao, spoke about the relationship between the entity he runs and the blockchain-based payment processor – Ripple.
As previously reported, Ripple has legal troubles in the US as the nation’s Securities and Exchange Commission alleged the firm behind the XRP token of conducting a $1.3 billion unregistered security sale.
While some of the US-based partners of Ripple have backed off, others, such as SBI Group, have shown support. Previously, the Japan-based conglomerate launched a crypto lending service platform and added XRP shortly after.
Kitao reaffirmed his organization’s stance and outlined that the payment processor’s CEO – Brad Garlinghouse – and the chairman – Chris Larsen – still plan to proceed with going public:
“After the current lawsuit, Ripple will go public. The current CEO wants to do that.”
Garlinghouse has openly discussed the possibility of going public before, and he was especially favorable of the idea during Davos last year. At the time, the executive predicted that numerous crypto-related companies will head down this road.
“We’re not going to be the first, and we’re not going to be the last, but I expect us to be on the leading side.” – he commented.
It’s certain now that Ripple will indeed not be first as the cryptocurrency industry already saw one of its giants going public.
As reported before, the largest US-based digital asset exchange did so a few weeks ago through a direct listing on Nasdaq. Bakkt and Kraken also have similar plans.
It has been a strong year for the collective crypto-market. Any asset in the top 10 would agree with this assertion, but this wouldn’t be the case for XRP. While on the rankings it remains 7th, its April 2021 high of $1.966 is yet to be tested again.
From a long-term perspective, every top asset managed a new ATH over the last few months. This list includes Bitcoin, Ethereum, and Cardano. For XRP, however, its 2017 high still stands.
Consistent momentum hasn’t been on its side after the SEC fiasco. Alas, structurally, its market might be undergoing a massive shift in the coming months.
However, it is important to note that the direction of XRP’s price will still depend on several external factors. The following article will outline the bullish parameters which may trigger its rally.
XRP to return to the top 3?
At press time, XRP was ranked 7th on the charts with a market cap of $52 billion. Binance Coin was at 3rd with a valuation of $82 billion.
XRP hitting $82 billion on the charts would mean a spike of about 60% to $1.75. According to the market structure, this target could be extremely viable.
Source: Trading View
Taking the example of the 1-day chart – XRP has been consolidating strongly in the liquidity pocket (highlighted in the chart) over the past month. With a prominent symmetric triangle forming at press time, the potential to breach and rally towards its immediate resistance of $1.40-$1.50 is fairly high.
One confirmation can be attained from the fact that lower trading volumes have been met by declining prices, which means any trading volume spike would automatically trigger an incline.
However, XRP’s reach might not only be limited to $1.40 or $1.50 anymore. The asset could be looking at the possibility of hitting its 2017 ATH by end of December and continuing its rally next year.
The monthly chart for XRP, considering it explodes in the desired direction, seems to be structurally targeting a massive breach of $10 on the chart.
Now, while such a movement is almost unfathomable, there may be a few narratives slowly swinging in XRP’s favour.
Coinbase, SEC, and Warren Buffett?!
SEC started reeling in the pressure on Ripple late last year and in December 2020, it filed an action against the organization and two of its executives. XRP’s value tanked during a collective bullish period and then, Coinbase announced its delisting on 19 January.
Its been 10 months since the lawsuit was filed and until now, Ripple has not been found guilty. Over the past couple of months, the momentum has shifted towards Ripple. In fact, the SEC has been ordered by Judge Sarah Netburn to offer clearer explanations as to why the Howie test applies to XRP, and not Ether and Bitcoin.
Jeremy Hogan, a vocal attorney in the XRP-SEC lawsuit, stated,
“UH-OH. The SEC is going to be forced to admit that there is nothing in an of these contracts that created an expectation of profits by purchasers of XRP. That’s a big problem for the SEC.”
With positive developments slowly surrounding XRP and Ripple, a part of the community believes that it is only a matter of time before XRP is re-listed on Coinbase.
While both these narratives directly impact the valuation of XRP, the Warren Buffett angle might be one for the long term.
According to reports, Berkshire Hathaway has invested $500 million in Brazil-based NEO bank, which is an existing RippleNet member utilizing its ODL services.
It can be speculated that Buffett saw some form of intrinsic value in Ripple’s ODL remittance services. This may have led to this massive investment.
Don’t count your chickens before they hatch
Regardless of the enticing narratives, it is essential to understand that such price jumps (if only) for XRP might come over the next few months and quarters, and not weeks.
It is still important to understand market dynamics before investing in an asset that has juggled market and legal volatility for over a year. Hence, as always, Do Your Own Research because this isn’t investment advice.
Bitcoin price might retreat to $56,000 as investors continue to book profit.
Ethereum price also prepares for a sub-$4,000 pullback.
Ripple price edges closer to a breakout from a bullish pennant pattern.
Bitcoin price continues to move sideways above a crucial psychological level. As long as support holds, BTC is in no trouble, however, if it breaks lower, it will likely drag Ethereum and Ripple along with it. Although this descent is likely to play out in the short term, it may be required to start a second leg-up.
Bitcoin price needs to correct
Bitcoin price is stuck producing lower highs and lower lows since rolling over at the October 21 $67,016 swing all-time high. While this pullback is currently stabilizing above the $60,000 support level, a breakdown could exacerbate the downswing and knock BTC down to the liquidity area, ranging from $52,595 to $56,004.
A dip into this zone will provide an opportunity for the sidelined buyers to jump on the bandwagon for the next leg-up. It will also allow investors to book profits, creating a double pressure of sorts. When this development reaches an inflection point, BTC will trigger a new bull run.
As for the upside, Bitcoin price will first encounter the $70,000 psychological level. Clearing this barrier will open the path to retest the 161.8% trend-based Fibonacci extension level at $77,525, a new all-time high.
BTC/USD 1-day chart
While things are looking up for the big crypto, a breakdown of the liquidity area’s lower limit at $52,956 will put Bitcoin price in a tough spot. While this move does not invalidate the bullish thesis, it will delay it.
In such a case, BTC might revisit $50,000 before restarting the uptrend.
Ripple has partnered with financial services company Pyypl to facilitate ODL using its native XRP crypto.
This will allow for instant and low-cost cross-border payments while eliminating the need of costly pore-funded accounts.
San Francisco-based blockchain startup Ripple is increasing its stronghold in one of the strongest remittance corridors – the Middle East and North Africa (MENA). On Monday, October 25, Ripple said that it is preparing for the first-ever in-market On-Demand Liquidity (ODL) deployment for the Middle East.
For this, Ripple has partnered Pyypl, an international blockchain-based financial services tech company. This on-demand liquidity deployment will leverage Ripple’s native cryptocurrency XRP. It will further help in facilitating instant and low-cost cross-border payments while eliminating the need for costly pre-funded accounts.
Pyypl noted that this is part of the company’s larger mission to enable digital payments for a billion smartphone users in Africa and the Middle East. As said, the OLD deployment will help Pyyl to solve one of the biggest issues of pre-funded accounts as seen with traditional cross-border payments.
Pyypl’s co-founder and CEO Antti Arponen referred to these legacy accounts as “inefficient use of capital”. He further noted that unlocking these previously trapped funds can help to better grow and scale the businesses. Arponen said:
We’re excited to be Ripple’s first partner of choice to bring the deployment of ODL to the Middle East. This enables our ever-increasing number of users to deliver remittances instantly and cost-effectively. We’ve also reduced our inefficient use of capital through ODL, and look forward to an exciting rollout of its capabilities across the region.
Unlocking massive opportunities in the MENA market
The traditional players in cross-border payments have been pretty laggard in implementing innovative solutions. Ripple is solving the trillion-dollar challenges of this industry using its ODL services.
Besides, Ripple notes that the Middle East caters to two of the world’s three largest remittance corridors with Saudi Arabia and the UAE. Last year in 2020, the Middle East handled combined payments worth $78 billion. Besides, the Middle East has made a rapid transition to digital in the last year as it prepares for the upcoming FinTech revolution. Brooks Entwistle, Managing Director of RippleNet in APAC and MENA said:
MENA continues to be a critical region for Ripple thanks to our outstanding roster of customers, a welcoming regulatory environment and a regional focus on the needed improvements in the current financial system. The establishment of yet another first-in-market ODL launch demonstrates the understanding that digital assets will play a central role in the future of global payments. We are delighted to partner with forward-thinking companies, like Pyypl, to ensure we can continue to break the status quo in the current global financial system to continue delivering the best experience for customers.
Before entering the MENA market, Pyypl has already started its ODL services in the Philippines. Pyypl holds the license from ADGM’s Financial Services Regulatory Authority.
The announcement has not had a major impact but Ripple’s XRP continues to trade just above $1.10 after gaining around 2 percent in the last 24 hours.