The price of XRP reached its highest point of $0.65 on Saturday, and it has maintained a price that is higher than $0.63 on Monday.
As Ripple's store of XRP continues to decrease, Attorney Bill Morgan has observed that the company's impact on other cryptocurrencies is rapidly diminishing.
The fact that Ripple is holding approximately 55% of the entire available supply in escrow is expected to reduce the amount of downward pressure on the price of XRP.
On Saturday, the price of XRP reached a new high for the year 2024 which was $0.65. However, it had a slight decline to $0.63 early on Monday morning. In the midst of developments in the SEC v. Ripple litigation, the alternative cryptocurrency has maintained its position above the psychologically significant level of $0.60.
As Ripple's stock of the alternative cryptocurrency decreases, Attorney Bill Morgan, who is a supporter of Ripple, feels that it is likely that Ripple's influence on the price of XRP will decrease as well. Additionally, the escrow that was established by the payment remittance company has the potential to make the supply of XRP more predictable, which will likely reduce the negative influence on the price of XRP.
Over the course of the weekend, the price of XRP managed to maintain its position above a significant psychological level of $0.60 and set a new yearly high.
Attorney Bill Morgan made a comment on the court records pertaining to Ripple that were being circulated on social networking platform X. He noted that the influence of the payment remittance firm on the price of XRP is expected to gradually decrease.
Two explanations are cited by the cryptocurrency expert as the causes for the fall. The first reason is that Ripple established an escrow in which the company froze approximately 55% of the supply of XRP in order to make it predictable. According to the information that was updated on the official website of XRPLedger almost a month ago, this is the case.
Ripple has locked 55 billion XRP, which is equivalent to fifty-five percent of the total possible supply, into a series of escrows in order to bring further predictability to the XRP supply, as stated in the blog. These escrows are stored on the ledger itself, and the mechanics of the ledger, which are verified by consensus, are responsible for controlling the release of XRP.
The second reason is that Ripple's holdings of XRP are gradually decreasing, and as the payment remittance company's XRP reserves continue to decrease, the company's impact on the alternative cryptocurrency may grow even less significant.
The SEC v. Ripple litigation has several important deadlines, one of which being the opening brief deadline of March 22, 2024, which is set by the regulator. After the Securities and Exchange Commission (SEC) asked the court for an extension, this is the revised deadline.
The price of XRP may increase to $0.70, according to technical analysis.
As can be seen in the chart below, the price of XRP is now on an upward trend. On March 2, the altcoin reached a new high for the year 2024, which was $0.6501. The alternative cryptocurrency is anticipated to reach its all-time high of $0.7000 in December of 2023. The price of XRP needs to overcome the barrier at $0.6501 and turn it into support in order to rally to its target of $0.7000.
Both the Moving Average Convergence Divergence Indicator (MACD) and the Awesome Oscillator (AO) provide support for the bullish thesis regarding XRP, as well as the recent advances that the bitcoin alternative has experienced.
In the case that the price of XRP drops, it may try to find support at the 78.6% Fibonacci retracement of its rise to its new 2024 peak, which is located at $0.6148. In the event that a daily candlestick closes below the 78.6% Fibonacci retracement, the bullish thesis on the price of XRP could be rendered incorrect.
