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- Ripple makes strategic moves, including the appointment of Jack McDonald to lead stablecoin initiatives following the acquisition of Standard Custody.
- The XRP price stayed consistently below both the 50-day and 200-day EMAs, indicating a bearish trend with an indication that if XRP breaks below $0.48, it might open the door for bears to target the $0.45 level.
As the broader cryptocurrency market comes under strong selling pressure ahead of the upcoming FMC meeting later today, June 12, Ripple’s native XRP also faces a downward price movement.
On Tuesday, June 11, XRP fell by 3.26%, following a 0.20% decline on Monday, June 10, closing the session at $0.4808. Concerns about the upcoming Fed interest rate decision and economic projections dampened buyer demand for XRP and the broader cryptocurrency market. Notably, XRP ended the session below $0.49 for the first time since April 13.
There was no specific news related to the SEC vs. Ripple case affecting buyer demand for XRP. Investors were awaiting the court’s decision on Ripple’s Motion to Seal, which seeks to protect non-public information, including financial statements and agreements with business partners.
The SEC opposed the Motion to Seal, arguing that such information should be publicly accessible if considered in a court ruling. They contended that disclosing contractual agreements could impact Ripple’s future business dealings as it expands its remittance services globally, per the Crypto News Flash report.
However, the court’s ruling on penalties for violating US securities laws is expected to have a more significant impact on XRP. The SEC’s remedies-related opening brief demands a nearly $2 billion penalty and an injunction against XRP sales to institutional investors, potentially affecting Ripple’s plans to expand its US business.
Additionally, the SEC has challenged Ripple’s plans to launch a stablecoin, labeling it an unregistered crypto asset. With a court ruling expected in the coming months, XRP remains in an uncertain state.
Ripple’s Push for Stablecoins
On Tuesday, Ripple CEO Brad Garlinghouse shared the appointment of Jack McDonald, stating:
With 2 major acquisitions in approximately 1 year with Metaco and Standard Custody, we extend a warm welcome to Jack McDonald! Jack is well-versed in the XRPL ecosystem (and to me!) – delighted to have him on board with Ripple, spearheading our stablecoin initiatives.
This announcement came on the heels of Ripple’s completion of the acquisition of Standard Custody. Jack McDonald will continue as CEO of Standard Custody while overseeing the stablecoin endeavors.
In February, Brad Garlinghouse underscored the significance of custody in the crypto market when discussing the acquisition of Standard Custody, per the Crypto News Flash report. He added:
We think there are some basic building blocks around crypto that are important to make crypto successful. Custody is an important part of that. For institutions to be able to custody their own as well as their customers’ digital assets, we think it is very important.
XRP Price Action
XRP stayed consistently below both the 50-day and 200-day EMAs, indicating a bearish trend. A potential upward movement for XRP would be signaled by a break above the lower trend line and the $0.50 mark, possibly leading to a move towards the upper trend line. Further momentum could bring the 50-day EMA into focus.
Investors should take into account factors such as US inflation data, updates from the Fed, and developments in the SEC’s case against cryptocurrencies. On the other hand, if XRP breaks below $0.48, it might open the door for bears to target the $0.45 level.
