Ripple‘s CEO recently confirmed the exposure to SVB, Silicon Valley Bank, which collapsed on Friday 10 March. Thus, it begs the question what impact this will have on the XRP token and, more generally, on the entire crypto sector.
Crypto news: Ripple’s exposure to SVB
The XRP token has been threatened by the recent revelation that Ripple was exposed to SVB, or Silicon Valley Bank, which was shut down this Friday by the Federal Deposit Insurance Corporation after suffering a run on withdrawals.
In any case, with the intervention of the Federal Reserve and the US Treasury, who assured SVB customers full access to their deposits as of Monday. Investors calmed down and returned to investing in crypto so that the market could recover.
Later, Ripple revealed that it had “some exposure” to Silicon Valley Bank. That exposure could have hurt the company significantly. But the joint statement from the Federal Reserve, the US Treasury, and the FDIC revealed that SVB’s (and Signature Bank’s) customers will have access to all their money starting Monday 13 March.
Therefore, as a result, the crypto market rebounded somewhat on Sunday and XRP did not fall further. Moreover, as US regulators have stepped in to support the banking system, it seems that there will be no more bank failures in sight.
Therefore, XRP can continue to look forward to the resolution of Ripple’s case with the SEC.
Just last week some positive developments happened for the company. With Judge Analisa Torres granting the company’s request to remove Patrick Doody as a witness and rejecting the SEC’s request to exclude attorney John E. Deaton as a witness for Ripple.
Focus on the price of Ripple (XRP)
Over the past 24 hours, the value of XRP has risen, climbing 6%, after recovering from a massive drop over the past weekend. At the moment XRP is at the $0.373344 level.
This means that it has seen its price rise in one week by 3.4%, dragged down by the market crash due to the Silvergate Bank failure and, right now, up after Bitcoin‘s recovery.
Even though XRP has not performed as well as other crypto assets, the token still has a bright future ahead as Ripple awaits a successful conclusion to its lawsuit with the SEC.
From the indicators, it appears that XRP will register a rebound sooner or later, as its 30-day moving average (in red) has fallen significantly below its 200-day moving average (in blue).
XRP’s relative strength index (in purple) has also fallen from 50 to nearly 40, indicating that it is close to oversold. However, XRP has not yet touched the low, so the crypto may not have a real recovery until its RSI reaches 30 or less.
The main reason for XRP’s bad weekend was the collapse of Silicon Valley Bank, whose failure only worsened the situation created by the Silvergate collapse.
However, the negativity did not end there, as Signature Bank was also shut down over the weekend. With state regulators closing the New York-based lending institution on Sunday.
Given that after the Silvergate difficulties some crypto exchanges had moved to Signature, this third failure is creating problems for the entire blockchain industry.
Ripple vs the SEC: latest developments in brief
Ripple’s small victories in recent times have added to the other positive developments over the past year, increasing the feeling that Ripple may get a favorable ruling or settlement against the SEC.
For example, last year the court granted Ripple access to important SEC emails while upholding the company’s right to use a “fair notice defense.”
Moreover, with Ripple’s Brad Garlinghouse predicting the case will end this year, it may not be long before XRP receives the kind of good news that encourages a significant rally.
Immediately after the case, we can expect XRP to rally back up to $0.5 or even beyond. If the rest of the market also begins a recovery, then the crypto could even surpass the all-time high of $3.40 touched in January 2018.
This is a real possibility, especially since XRP missed the bullish market of 2021 and Ripple’s activity continues to do well despite the current case.
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