- XRP regains strength after testing $2.00 support backed by growing institutional interest.
- Renewable energy company VivoPower diversifies investment with a $121 million XRP-focused treasury.
- Short-term resistance at $2.35 could temper bullish momentum expectations this week.
Ripple’s (XRP) gains momentum as the crypto market broadly consolidates, trading at $2.22 at the time of writing on Tuesday. The slight uptick in the XRP price comes amid recovery in the broader crypto market, particularly with Bitcoin (BTC) stepping above $106,000. Meanwhile, the international money remittance token upholds robust support at $2.07.
XRP offers bullish momentum signs as institutional demand grows
The sell-off from the May high of $2.64 to support at $2.07 occurred amid tensions over President Donald Trump’s tariffs. A court ruled against the implementation of the tariffs last week, creating mayhem in the global economy. While an appeals court temporarily paused the ruling, uncertainty remains.
Meanwhile, XRP’s downside price risks appear to be fading, buoyed by risk-on sentiment, as publicly listed companies like VivoPower allocate funds to XRP-dedicated treasury strategies.
VivoPower, a renowned renewable energy company, recently announced that it is setting aside $121 million for an XRP-focused treasury reserve. The reserve will leverage BitGo’s over-the-counter (OTC) infrastructure, according to Tuesday’s announcement.
“VivoPower is committed to driving value for our shareholders by building out a leading digital asset treasury strategy,” said Kevin Chin, CEO of VivoPower. “[It’s] a mission we plan to accomplish through partnerships with best-in-class digital asset leaders like BitGo,” Chin added.
At the same time, Webus International, a company specializing in providing customizable car and touring services in China, announced on Monday the signing of an agreement to raise $300 million via a non-equity financing model to establish an XRP-centered reserve.The company stated the reserve is part of a larger plan to integrate XRP payments into Webus International’s ecosystem.
Technical outlook: Could XRP sustain momentum to $2.60?
XRP’s price holds above a key ascending trendline after bouncing off the 200-day Exponential Moving Average (EMA) support at $2.07. The Relative Strength Index (RSI) upward reversal, which is approaching the 50 midline, suggests that XRP could gain momentum in upcoming sessions.
Traders may look out for a potential buy signal from the Moving Average Convergence Divergence ( ACD) indicator, which could boost momentum toward the target of $2.60.
A buy signal would manifest when the blue MACD line crosses above the red signal line, thus encouraging traders to buy XRP.
XRP/USDT daily chart
The bullish outlook remains intact in shorter time frames, as illustrated by the 4-hour chart below. The MACD here has sustained a buy signal since Saturday and is on the cusp of breaking above the zero line (0.00). Should traders continue to buy XRP due to the buy signal and the expanding green histogram bars, the path with the least resistance will stay firmly upwards.
The RSI in the same time frame reinforces the bullish momentum. As it closes the gap toward overbought territory, the probability of the XRP price extending its gains could grow significantly.
XRP/USDT 4-hour chart
Meanwhile, XRP sits below the 100-day Exponential Moving Average (EMA) and the 50-day EMA, which could slow down or reject the uptrend at the $2.26 and $2.27 levels, respectively. Moreover, the previously tested seller congestion at $2.35 could increase the risk of a pullback or consolidation amid potential profit-taking as the XRP price recovers.
SEC vs Ripple lawsuit FAQs
It depends on the transaction, according to a court ruling released on July 14, 2023: For institutional investors or over-the-counter sales, XRP is a security.
For retail investors who bought the token via programmatic sales on exchanges, on-demand liquidity services and other platforms, XRP is not a security.
The United States Securities & Exchange Commission (SEC) accused Ripple and its executives of raising more than $1.3 billion through an unregistered asset offering of the XRP token. While the judge ruled that programmatic sales aren’t considered securities, sales of XRP tokens to institutional investors are indeed investment contracts. In this last case, Ripple did breach the US securities law and had to pay a $125 million civil fine.
The ruling offers a partial win for both Ripple and the SEC, depending on what one looks at. Ripple gets a big win over the fact that programmatic sales aren’t considered securities, and this could bode well for the broader crypto sector as most of the assets eyed by the SEC’s crackdown are handled by decentralized entities that sold their tokens mostly to retail investors via exchange platforms, experts say. Still, the ruling doesn’t help much to answer the key question of what makes a digital asset a security, so it isn’t clear yet if this lawsuit will set precedent for other open cases that affect dozens of digital assets. Topics such as which is the right degree of decentralization to avoid the “security” label or where to draw the line between institutional and programmatic sales persist.
The SEC has stepped up its enforcement actions toward the blockchain and digital assets industry, filing charges against platforms such as Coinbase or Binance for allegedly violating the US Securities law. The SEC claims that the majority of crypto assets are securities and thus subject to strict regulation. While defendants can use parts of Ripple’s ruling in their favor, the SEC can also find reasons in it to keep its current strategy of regulation by enforcement.
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