XRP price drops 22%, MoneyGram freezes its relationship with Ripple
Like most crypto assets, Ripple's price is in the red, comparing the losses to the dollar in the last day, but it is down 22 percent in the week to date.
The weight of XRP and Ripple is the demand of the United States Securities and Exchange Commission (SEC). The subsequent hearing in the coming days may also affect some of Ripple's core businesses, notably Liquidity on Demand (ODL).
Ripple's roadmap to 2021 disrupted
The SEC alleges that XRP is a security.
Consequently, most exchanges held the coin until clarity.
Meanwhile, MoneyGram is in a difficult situation. After partnering with Ripple to receive your investment, giving it a new life, the money transfer giant has now suspended its relationship with Ripple, the firm behind ODL, not Ripple Labs, the official issuer.
A few days after the SEC's lawsuit, MoneyGram said they weren't using XRP to move value. Their partnership involved the use of XRP on Ripple's ODL corridors, especially the US and Mexico tunnel.
MoneyGram puts its relationship with Ripple on hold
On Friday, the company suspended its relationship with Ripple. Therefore, you will not receive your development fees in the first quarter of 2021 after receiving $ 12 million from Ripple in the same period last year.
Since the beginning of their partnership, Ripple has been paying MoneyGram to use XRP as an agent in the transfer of value. Last year alone, he received $ 61 million from the finance company that leverages the blockchain.
Consequently, given that financial taps are running low and Ripple is in a tight spot, MoneyGram's chief financial officer (CFO) will have a challenging task to fill the expected gap.
Ripple price analysis
The Ripple price is trading within a bearish breakout pattern with strong double-digit losses in the previous week.
From the daily chart, the sellers are in control, judging by the alignment of the sell bars and the lowest BB. Bands suggest strong momentum from selling pressure.
Considering that XRP / USD is trading within a bearish breakout pattern within the bearish candle on February 1, each high may be another opportunity to sell.
This forecast is from a stress versus outcome analysis. The fact that the bulls do not add to their gains and break out $ 0.65 pours cold water on the uptrend.
On the other hand, losses below $ 0.35, the 78.6 Fibonacci retracement level of the November 2020 trading range, and the low of the February 21 bearish bar could cause XRP to retreat to $ 0.20 or January 2021 lows. This will confirm sellers on February 1 and 21.
Chart courtesy of Trading View
Disclaimer of Liability: Opinions expressed are not investment advice. Do your research.
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