Hi, there. Now, people imagine the cryptocurrency industry was a sham and the abode of shady poachers. Why wouldn’t they? It was understandable why they felt that way back then with it being a new player in financial markets and with only one occupant in the crypto space.
Now, whilst many have come into the light what the industry represented, especially with the adoption of another top crypto in the form of Etha, which ranks second on the list of the top crypt in the world. Now, while several other cryptos have risen up to the occasion, the prime example of which is Zamp, of course, it’s always been a rough ride for the crypto industry.
Now, today, we’ll be looking at how you can benefit from the ongoing XRP versus SEC lawsuit. And if you’re watching a video on this channel for the first time, please have yet to hit the Leiken subscribe button to watch more videos like this one. So let’s get on with this video now.
EXP is the third-largest crypt in the world in terms of market capitalization, Karenni has a market capitalization of around 24 million dollars, which is only surpassed by that of Bitcoin and of course, Ethereum. The price is currently around point twenty-two of a dollar, and yet it retains its position amongst the elite crypt in the world.
Now, like every other crypto asset out there, it’s got a growing band of devoted investors who are committed to seeing it rise massively in a bit, of course, to earn a profit. Now, the queen has struggled a little bit of late, particularly in 2020, and experienced quite a lot of turmoil in 2019, which was not a good year for the coin.
But 20/20 held such promise for the crypto. It hit a stumbling block when the pandemic ravaged the entire world. However, this was of no apparent harm as other cryptic to experience the full strength of this economic storm.
Now, whilst Bitcoin and other altcoins picked up and began an extended rally after the restrictions were partially lifted in several parts of the world, S&P did not rise significantly and well, not until the fourth quarter. Twenty-twenty. Well, there.
And then the price rose to about point 43 of a dollar and then hit the point five five dollar mark. Now, on to this for quite some time before it then rose to a whopping point seventy in December at the end of last year.
Now, things took a turn for the worse towards the close of the year with the news of the SEC suing RIPPLE for the sale of illegal securities recent years of investors. And that, of course, caused quite the tremor. So now usually, as is common with crypto investors, even stock, everyone takes flight.
At the first sign of trouble, they’re out the door. It’s unsurprising that we’ve got a lot of people selling their assets. People are always prepped for the worst investor. Trust in any crypto is very important, and that’s one of the things that keep it flying in the industry. Now, once the position of the crypto is under threat, we can only guess what it’ll cause within the camp of investors. It’s a guessing game now.
The price of XRP has taken quite a tumble, falling out, falling about 70 percent of its price levels. And it’s unclear just how far it will still fall. Now, the problem facing reflects up with the SEC exploring this possibility that RIPPLE Inc, the mother company of XRP, is heavily involved in the affairs of XRP as crypto.
Now, this insinuates that their involvement and the crypto are treated as a security. An addition SCC looked at, looked at the facts of the 100 billion worth of XRP has the mind and only about 45 billion are in circulation. This man that about 55 billion are held in reserve.
Now, the question is, who holds a reserve and is that a cause for concern as Ripple is supposed to be the custodian of the reserve? Hmm. Now, this makes it directly involved in the proliferation of the cryptocurrency. It was deemed similar to a security or a stock where the company holds onto a large portion of the stock or shares pending the need for public offerings.
Now, these arguments will surface as they try to prove just how deep Ripple’s involvement with the crypto is. The connection between XRP and Ripple is pretty basic. XRP is backed by RIPPLE Labs, a company that’s a claim for creating a slick payment solution that can grow to become the most used payment system in the world.
And it is getting close and the foundation of the crypto XRP is pretty deep, with it being decentralized from rival labs. But it’s being put to use by the company’s revolutionary payment platform to facilitate faster and cheaper cross-border transactions.
And that is key now, given the high hopes for it on this. And it’s not so surprising that XRP, which seems to ultimately have the least value, is ranked high amongst the top five currencies in the world and also in the pool of long term investors.
And that’s really important because that matters now reflects Alpay happens to be the most discussed crypto for potentially long term value and yield. Hmm. So the price initially fell when Ripple’s CEO announced that the company will be sued by the US Stock Exchange Commission, the S.E.C. So when the lawsuit landed, it caused a further debt to about point thirty-five, thereby halving its previous high of, as we said earlier, point seven.
Now, the most impactful effect may be the removal of XRP from common exchanges such as Coinbase. Now they’ll be afraid of trading unregistered securities and the penalties associated with that, as well as further dumping by other cryptocurrency exchanges. So we need to look at this now.
This could lead to price shocks and liquidity problems for XRP. No. No Krypto can exist outside the scope of exchanges, exchanges proffer a safe haven, there’s unregulated by any government agency for all cryptos. They allow cryptos to be traded among holders and traders, and all exchanges are connected to each crypto blockchain.
Hence, they’re able to facilitate the transactions between the users. Now, the news of this lawsuit has led to certain exchanges considering playing it safe. Well, why wouldn’t they? And some have taken measures to delist and stop trading XRP on their platforms. Now there is the risk of a pretty unpleasant situation that may arise. FCC prevails in court over Rypple for any exchanges caught trading XRP.
Now to similar exchanges had already delisted XRP and have allowed XRP owners to trade their coins with a deadline pending before they completely halt the trading XRP on that platform. Now, this wasn’t so significant until Coinbase, one of the largest exchanges in the world, announced that it would place restrictions on trading XRP for the time being.
The exchange was due to go public this year, and this was the first reason why they considered delisting XRP. Now, this decision came not long after they oversaw the implementation of the Spark airdrop, which had a dramatic effect on the price of XRP. Coinbase has been one of the long-standing supporters of XRP and losing them has surely hit them as hard in the press of XRP.
And of course, XRP fell further despite the promise made by the company to consider relisting it once the case blows over. Well, we shall see. So this case is gradually being seen as an attack not on XRP alone, but on the Krypto industry at large.
It’s a bigger story. In other words, now there are a lot of threats coming in from different directions, targeting cryptos and exchanges. The S.E.C. is but a piece of this bigger puzzle and the US Treasury Department is toeing the line to now.
The agency is deemed to be working towards an agenda that would require banks and exchanges like Coinbase to verify the identity of so-called unroasted devices and software wallets that can transact in Bitcoin. And, of course, all the other. All the other.
Now, this would totally put a check to the complete decentralization of the systems in place in the auto industry. So as against a trend of selling of this selling frenzy, XRP is still giving out good vibes, which suggests that the coin may be down but not out.
So the situation surrounding it may not be normal, but it also requires a less than normal outlook to dealing with it. Now, the position of XRP coin is unique and it presents a never seen before opportunity that is rare amongst top cryptos and amongst all kinds of currencies.
XRP is technically the most stable of the bunch and that is key. So even though it’s not exempted from the volatility of the market, it has multiple features that make it a long-standing option for investors.
Now a larger number of investors exist outside the US. The case being dragged with the SEC is seen as a factor that could literally push XRP out of the US market. Interesting. Riffel is intent on fighting it till the very end, and they are committed to securing the necessary measures to ensure that the crypto continues to tread its path as a currency rather than a security, as is argued by the SEC.
Now, this may mean that the company shifts its base to a country that’s more crypto-friendly. Now, certain countries have notably been known to be receptive of the crypto industry, such as, of course, China, Switzerland, interesting. And Japan and so on. Now, China is known to be the base of operations for Bitcoin and Ethereum, and that’s really not by chance.
Now, a move to any of these countries has been mooted way before the SEC lawsuit or file. That may mean losing an extremely important market rival has for a while been targeted by US regulators aiming to control the space they love, control, and they hate to lose it.
The company’s decision to fight the case long term brings a huge sense of relief to calm the nervous nerves of beef up their loyal investors. So desperate times call for desperate measures, but removalist case calls for calm rather than panic. Why? Because it’s a great opportunity for people to buy into the debt and hold the crypto until things improve.
Despite the ripple SEC lawsuit, the impact of HSP trading halts and the absolute panic selling that’s taking place in XRP. XRP remains well positioned in the long term bullish setup. Now take a look at this chart. This chart shows that it’s not sure to continue, but it shows that there is no real reason to panic.
In fact, it is quite really the exact opposite now solely on the left side of the chart. You can see the S&P posted a high in late 2014, excuse me, and then into a long, sideways movement that lasted until early 2017. Now, support was established around the point zero forty-five region, the green base and a falling level resistance shown by the pink falling trend line.
Now, that the overall structure is similar to what we’re seeing today. Now dig further into the formation in 2016. Here we can see that when the price broke out above the falling trend line, the rally was capped by a test of the twenty-three point six percent retrace.
Now, from there, the price returned to the top of the falling pink trend line, but it held continuously as support for about 100 days. During that time, S&P also fell below the fifty-week moving average orange trend line. Then XRP exploded higher, rallying exactly to the two-point six one eight retraces.
Now, from there, we saw a pullback and then another rally, this time exactly to the sixteen retraces. Now, the price entered a sideways correction, followed by another explosive rally which ultimately counts off are the 128 retraces. Now, the apparent coincidence is really fascinating anyway.
If we compare that to the current structure, we concede that it is still extremely similar. So as long as XRP can hold continuous support on this trend line, it has a pattern in place. Now, if that pattern persists, the next thing to expect would be waiting for it.
An explosive rally. Now, where could that explosive rally take us? Well, if it were to mimic the twenty seventeen rally and we’ve no reason to believe that it won’t because the market structure is the same now as it was back then.
We should expect that first up to be the two-point six when a retrace yet again, that’s around nine dollars. Now, from there, I would expect a rather large pullback, followed by a push to the sixteen retraces around the fifty-five.
Now from there it will stabilize and explode, probably higher. Again, an explosion to the 128 retrace, which is around about the 445 at 445 dollars. Now, that is one beautiful outcome that rival investors can look forward to as we hope that the pattern is replicated. Now, the current chart correlates almost perfectly with the structure from 2014 to the early twenty seventeen straight.
So that technology is no reason to believe that it won’t continue to correlate until we can see that there is a clear deviation of the pattern. So I hope you enjoy this video. And if you did, you do well to give us a thumbs up. Please subscribe and click on the notification bell so you can get updates whenever I post a new video.
But tell me, what are the crypto news would you like to discuss on this channel? Please let me know your answers and place them in the comments section below. Much appreciated. And of course, Wilshere does go ahead and click one of the videos on your screen. I will see you guys next time.
Read More: Best Cryptocurrency Exchanges of 2021