XRP Price Movements Remain Narrow Despite Deaton’s Statement

The Pro-XRP lawyer, John E. Deaton, recently commented on Ripple’s In-Principle approval from the Monetary Authority of Singapore (MAS) and discussed the implications for XRP’s price.

Deaton highlighted the significance of this approval in a tweet,  noting that only a small number of companies, less than 20, have obtained such a license in Singapore. But even with the license, XRP price didn’t react as expected. 

Implications Of XRP License

Notably, in the post, Deaton pointed out that despite Ripple’s accomplishment, the price of XRP did not react to the announcement.

He expressed that the expectation was that XRP price would respond positively following the company’s efforts. But instead, XRP continued to follow the trend of Bitcoin and the macro environment. 

Addressing a question about the license’s impact on XRP’s usage in transactions, Deaton confirmed that the license obtained by Ripple would indeed allow the utilization of XRP.

This clarification countered the claims made by other legal experts, including Australian-based lawyer Bill Morgan, who raised doubts about whether all On-Demand Liquidity (ODL) transactions involving Ripple would include XRP.

Currently trading around $0.49, XRP’s price behavior has raised questions about the Securities and Exchange Commission’s (SEC) claim that XRP investors are in a common enterprise with Ripple.

The SEC had charged Ripple with offering unregistered security in the form of XRP, and the lawsuit has been ongoing for over two years.

While no specific date is set for a summary judgment decision, Ripple remains optimistic about resolving the case before the end of 2023.

Ripple’s In-Principle License And Possible Price Trajectory

Ripple made headlines with the In-Principle approval for a Major Payments Institution license from MAS. This accomplishment positioned Ripple among fewer than 20 firms that have received such a license in Singapore.

The In-Principle license enables Ripple’s subsidiary, Ripple Markets Asia Pacific, to expand the use of its On-Demand Liquidity (ODL) solution in Singapore.

While XRP briefly spiked from $0.50 to $0.52, a closer examination revealed that most cryptocurrencies also recorded minor gains during the same period.

Also, the price of XRP is showing signs of a potential bearish trend based on technical indicators. The MACD line is now positioned below the signal line, indicating a potential shift toward a bearish trend. This suggests that selling pressure may increase, leading to a downward price movement.

Although the price of Ripple is currently above the 50-day and 200-day Moving Averages (MA), these moving averages can act as dynamic support or resistance levels.

If the bearish momentum continues, the price may break below these moving averages and further reinforce the bearish trend.

Additionally, the Relative Strength Index (RSI) for Ripple is currently at 48.60. An RSI reading below 50 suggests a neutral to bearish sentiment in the market.