Ripple’s Federal Affiliation Rattles XRP: Price Dips Amid Regulatory Surprises

Estimated read time 3 min read
  • Ripple’s recent revelation of being a federal contractor or subcontractor, indicating a newfound engagement with the US government, coincides with a sudden downturn in XRP prices.
  • The cryptocurrency’s week-long uptrend faces jeopardy as XRP experiences bearish signals, with indicators suggesting a potential dip to $0.560, leaving the crypto community speculating about the impact of Ripple’s unexpected government affiliation on its future.

In a shocking turn of events, Ripple, a major player in the cryptocurrency space, recently disclosed its status as a federal contractor or subcontractor through a job opening. This revelation has not only stirred the crypto community but has also coincided with a sudden downturn in XRP prices, nearly invalidating the week-long uptrend observed since last week.

Ripple’s Affiliation with the US Government

The admission of being a federal contractor in a job opening on Ripple’s website is the company’s first indirect acknowledgment of engagement with the United States government. Federal contractors are entities that enter contractual agreements with US government departments or agencies.

This disclosure comes as part of the application process, where candidates are required to fill out a Voluntary Self-Identification of Disability form in compliance with the law.

The revelation is particularly surprising considering Ripple’s prolonged legal battle with the Securities and Exchange Commission (SEC) over the classification of XRP.

Despite its history of resisting government interventions, Ripple seems to be expanding its collaboration, with talks reported between the company and over a dozen governments globally for the development of Central Bank Digital Currencies (CBDC).

XRP Price Faces Bearish Signals

Simultaneously, XRP’s price has taken a hit, jeopardizing the micro uptrend observed over the past few days. The 4-hour chart highlights the cryptocurrency’s attempt to recover and breach a critical resistance level marked at $0.5847. This barrier has proven resilient for the past 14 days, with only one successful breakout observed around the approval of the spot Bitcoin ETF.

Unfortunately, this time, the resistance level remained unbreached, resulting in a dip below the uptrend line. Key indicators, including the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), are signaling slight bearishness. Should this trend persist, XRP might face a drop to $0.560.

The fate of XRP’s price, however, hangs in the balance. If broader market bullish cues come into play, a recovery is plausible, and the uptrend may prevail. A breach of the $0.587 resistance level could potentially propel XRP beyond $0.600, provided it transforms into a supportive level.

As the crypto community grapples with Ripple’s unexpected affiliation with the US government, investors keenly watch XRP’s price movements, anticipating the impact of this revelation on the cryptocurrency’s future trajectory.

vivian

Vivian Njoroge is a seasoned crypto and blockchain news writer with a passion for decoding the complexities of the digital financial world. Armed with a keen eye for emerging trends and a knack for simplifying intricate concepts, Vivian brings a unique blend of expertise and enthusiasm to her writing. Her articles, characterized by clarity and depth, aim to keep readers abreast of the ever-evolving landscape of cryptocurrencies and blockchain technology.

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