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XRP locked in AMM pools nears 4.5 million mark, Ripple awaits SEC response in lawsuit

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FXStreet in Market News 12 388199
May 6, 2024 14:02

content provided with permission by FXStreet

  • Ripple locked in liquidity pools on the Automated Market Maker crossed 4.5 million on Monday. 
  • SEC vs. Ripple lawsuit to see filing from the regulator by May 6 deadline. 
  • XRP touches high of $0.53, climbs towards $0.57 target is likely. 

Ripple (XRP) closed above $0.52 on Sunday and resumed its climb on Monday, May 6. Sentiment among market participants is positive as traders await Securities and Exchange Commission (SEC) response filing and XRP locked in Automated Market Maker (AMM) liquidity pools crosses 4.31 million. 

Daily Digest Market Movers: Ripple holders positive on Monday, led by these catalysts

  • Ripple holders are awaiting the SEC’s response filing by the May 6 deadline. 
  • The SEC alleges Ripple of unregistered securities sale and has asked the court to levy a $2 billion fine on the payment remittance firm. 
  • The financial regulator and Ripple are arguing on what the latter labels “new expert materials,” and the SEC defends as facts and statements from SEC Assistant Accountant Andrea Fox.
  • Ripple defended its motion to “strike new expert materials” and the SEC is expected to file its response on Monday. 
  • The court is expected to rule on the matter of the penalties imposed on the payment firm in May. 
  • Another key catalyst influencing XRP price is AMM on the XRPLedger that offers a passive income to participants. 
  • Data from XRPscan shows that over 4.31 million XRP tokens have been staked in liquidity pools on the AMM. This marks an important milestone for Ripple and the rise in staked XRP shows rising confidence among XRP holders. 

XRP

Total XRP Locked in AMM

Technical analysis: XRP likely to climb towards $0.57 in upward trend

Ripple closed above $0.52 on Sunday. The altcoin resumed its upward trend on Monday, hitting a high of $0.53, at the time of writing. XRP is making steady progress towards its April 22 peak of $0.57. The altcoin faces resistance at $0.55, the 61.8% Fibonacci retracement level of the decline from April 9 top of $0.6431 to April 13 low of $0.4188. 

The Moving Average Convergence Divergence (MACD) indicator shows green histogram bars above the neutral line, combined with the recent crossover of MACD above the signal line, it supports XRP price recovery.

XRP

XRP/USDT 1-day chart 

XRP price needs to close above $0.53, the 50% Fibonacci retracement level of the decline between April 9 and 13, to sustain its uptrend. A close below this level could invalidate the bullish thesis and XRP could dip to support at $0.4868, a level that acted as support on the weekly time frame. 

Bitcoin, altcoins, stablecoins FAQs

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.