Ripple Price Analysis: XRP Price Trends Horizontally As SEC Drama Intensifies
Daily Ripple XRP Price Forecast
- The UK treasury labels XRP as not a security.
- The XRP price is currently going through a period of extended consolidation.
The Ripple-SEC lawsuit drama has become more fascinating than any other soap on TV. From power shifts to twists in the tale – this saga seemingly has it all. However, it seems that the price action is failing to replicate this behind-the-scenes turmoil.
The UK Treasury Says That XRP Is Not a Security
The United Kingdom government seems to be taking a stance that XRP is an exchange token and not a security. Her Majesty’s Treasury has recently published a new document, which outlines the UK’s regulatory approach to digital assets and stablecoins.
According to the report, XRP, Ethereum and Bitcoin are “tokens that are primarily used as a means of exchange.” These “exchange tokens” fall under an “unregulated” category, meaning they are neither e-money nor security tokens. An excerpt from the report reads:
Security tokens have characteristics akin to specified investments, like a share or a debt instrument, as set out in UK legislation. Broadly, these are likely to be tokenised, digital forms of traditional securities.
The classification is crucial to Ripple as it prepares for the lawsuit initiated by the US Securities and Exchange Commission (SEC). The commission has alleged Ripple of selling XRP tokens as unregistered securities.
Ripple has previously highlighted the UK FCA classification amid its calls for regulatory clarity from the United States.
Countries that take the lead on these frameworks will be better positioned to attract capital, companies and jobs – particularly since blockchain technology is here to stay. Regions that have unclear guidelines should establish their own frameworks to remain competitive and avoid losing companies to better regulated markets.
Speaking of the SEC….
SEC Enforcer Behind Ripple Lawsuit To Step Down
Marc P Berger, the Deputy Director of the Division of Enforcement at the US Securities and Exchange Commission (SEC) is leaving the commission soon, as per a recent press release. He was appointed for the position back in August 2020.
Although the time he worked as the Deputy Director is short, it has one major highlight - the SEC’s $1.3 billion lawsuit against Ripple, CEO Brad Garlinghouse, and Executive Chairman Chris Larsen.
Berger can also be partially credited for the SEC’s enforcement action against Telegram. The commission compelled the messaging giant to return $1.2 billion to those who invested in its cryptocurrency offering. “Grams” digital tokens never did get off the ground.
He was also responsible for enforcing securities laws and protecting investors, including by taking actions against prominent firms Robinhood Financial LLC, Deutsche Bank AG and Luckin Coffee.
Ripple To Bring XRP Ledger to Central Banks
Ripple is currently working towards bringing the XRP Ledger to central banks. The cross-border payments firm is looking to hire three central bank technical partner managers for its offices in San Francisco, New York and London.
People hired for this position will be responsible for designing and deploying central bank digital currency (CBDC) projects. Ripple noted that banks can issue stablecoins on the XRP Ledger (XRPL).
Built for payments, XRPL can also be used to support the issuance of stablecoins with a unique, fungible token functionality called Issued Currencies. Issued Currencies is designed to be the ideal stablecoin platform, providing simple but rich management functionality for the issuer that makes it easy to create, issue and manage any asset – including stablecoins.
Last week, the Office of the Comptroller of the Currency (OCC) announced banks can use stablecoins for payments while serving as a node on an independent node verification network (INVN).
Ripple Drudged Down By Low Volatility
After a quick bullish jump last week, the price of Ripple has been trending horizontally around $0.295. In the previous four days, the XRP price has crept below the 200-day SMA. This decreasing price volatility is reflected in the way the Bollinger band is acting.
Image: XRP/USD Price Chart
As you can see, the band has narrowed considerably, and the price is going currently through a narrow channel. This signifies that we are going to be in an extended consolidation mode before XRP explodes out.
Ripple Price is Expected To Hit These Levels
XRP price will keep trending around $0.295, with the 200-day Bollinger band acting as a price checker.