Ripple Technical Analysis: XRP Keeps Oscillating Around The $0.43 Level
Daily Ripple XRP Price Analysis
- Ripple price is sitting on top of the 50-day SMA.
- Short-term market momentum is still in the green.
Between February 14 and February 28, the Ripple price crashed from $0.63 to $0.417. XRP has found support at the 50-day SMA and since went up to $0.443. Since then, the price has dropped to $0.43.
Ripple Price Is Trending Horizontally For Now
Since February 28, the Ripple price has been trending horizontally with the buyers and the sellers effectively cancelling each other out. This horizontal trend in price is reflected in the movement of the relative strength index (RSI). This shows that both the buyers and sellers can effectively take control of the price if they manage to eke out an advantage.
Image: XRP/USD daily
As per the 4-hour Ripple price chart, XRP is still trending horizontally between strong levels at 50-bar and 20-bar SMAs. The MACD shows that the market momentum is still in the green, so the buyers may still manage to take control in the short-term.
Image: XRP/USD 4-hour
MoneyGram Faces XRP-Related Lawsuit
Payments firm MoneyGram is currently facing a lawsuit over allegedly false statements made regarding XRP and its partnership with Ripple. Rosen law firm has submitted the class-action lawsuit on behalf of investors who purchased securities from MoneyGram between June 17, 2019, and February 22, 2021.
The law firm has asserted that MoneyGram made fraudulent statements about its partnership with Ripple and the status of XRP as a security. According to a post from June 2019 that announced a "strategic partnership" between Ripple and MoneyGram, the latter utilized Ripple's xRapid product and leveraged “XRP in foreign exchange" settlements as part of its cross-border payment process.
However, on December 23, 2020, MoneyGram clarified it is not dependent on Ripple’s xRapid service (later renamed to On-Demand-Liquidity or ODL in 2019) for its foreign exchange trading needs.
MoneyGram does not utilize the ODL platform or RippleNet for direct transfers of consumer funds – digital or otherwise. Furthermore, MoneyGram is not a party to the SEC action.
MoneyGram went on to suspend its partnership with Ripple in February 2021 after the US Securities and Exchange Commission filed a complaint against Ripple Labs alleging securities violations in December 2020.
Rosen has alleged that MoneyGram did not disclose that XRP was viewed as an unregistered security by the SEC. Additionally, if the SEC decides to enforce securities laws against Ripple, MoneyGram would likely lose the profitable stream of market development fees that was critical to its financial result. Rosen added:
As a result, defendants’ public statements were materially false and/or misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
As per a Cointelegraph report, Ripple paid MoneyGram for using its platform while providing financial incentives for helping the startup expand to new markets. The Wall Street Journal reported that MoneyGram received $38 million in net market development fees from Ripple in 2020 (15% of the company’s adjusted earnings).
Ripple Price Is Expected To Reach These Levels
The Ripple price is going to trend horizontally around the $0.43 level.