Why Is XRP Price Holding onto Yearly Gains despite Ripples Legal Issues？

Why Is XRP Price Holding onto Yearly Gains despite Ripples Legal Issues？

Ripple Inc. is expanding its business into the NFT industry and XRP seems to be poised to keep recovering.

XRP as a cryptocurrency keeps catching the attention of global companies, as the firm behind the blockchain, Ripple, is broadening its business fronts within the sphere. As a digital asset, it remains in sixth place in the ranking of the largest cryptos by market capitalization, with a figure of $44.46 billion as of press time, according to Coinmarketcap.

Although it hasnt brought too many gains so far from a yearly perspective, XRP has managed to overcome the hurdles amid the legal issues faced by Ripple Inc. in the United States. The San Francisco-based blockchain firm recently launched a fund worth $250 million to support the creation of non-fungible tokens (NFTs) on the XRP Ledger.

Ripple and the NFT Market

Such maneuver will allow the company to incentivize brands, marketplaces, and creators to explore new use cases for the NFT market amid the current hype this sector has been living nowadays.

“Since day one, weve viewed crypto and blockchain as powerful levelers, unlocking access and equity for everyone. The growth of NFTs is an important part of that vision, helping build a tokenized future that will allow new business models to prosper and people to engage more deeply with the communities and things they care most about,” Ripple noted in a blog post. This announcement propelled XRP price to test fresh highs and skyrocketed by 7.5%.

Current Status of the US SEC vs. Ripple Legal Battle

But, what had happened with the legal battle against the US Securities and Exchange Commission？ It was recently revealed that the US watchdog did not always consider XRP a security, which is the hot potato of the legal tussle. Only until 2018 XRP was included within the list of securities of the SEC.

When the news crossed the wires, XRP price skyrocketed by 10% in September because it contradicted the initial statement from the regulators that XRP cryptocurrency was a security from the beginning. Thus, US SEC used such assertion to argue that Ripple was allegedly engaged in illicit securities sales from early days.

Former US Treasurer Talks about XRPs Purpose

The strain of positive news didn‘t stop during September for Ripple and XRP, as Rosie Rios, the 43rd Treasurer of the United States from 2009 to 2016 under President Barack Obama, issued her definition of XRP, which doesn’t align with the SEC‘s assertions: “XRP’s primary purpose is facilitating cross-border payments while other #Cryptos find their value in speculation. Chinas latest move brings this point home.”

XRP Price Analysis

So far, from a broad perspective based on the daily chart, XRP keeps its yearly gains at the end of September above the $0.9000 critical level. This is because XRP was hit hardly by the sell-off seen at the start of September, combined with Chinas tussles on the regulatory crackdown towards the crypto industry. However, losses were capped by such psychological area.

As a result, the 200-day simple moving average has provided dynamic support across the board, and the RSI indicator keeps trending upwards. Next critical resistance levels lie at $1.018 and $1.123. Should the lows from September give up in order to open the doors for further declines toward a critical resistance, now support, placed at around $0.7643.