Prominent Attorney Specializing in XRP Asserts that Ripple Lawsuit and Escrow Burn Have Insignificant Impact on Price Movements
Once again, XRP is struggling to stay above the $0.5450 barrier and is now heading downwards, potentially testing the $0.512 support area. This price movement raises the question of whether XRP’s price is being influenced by the Ripple lawsuit and the decision not to burn XRP escrow. However, analysts deny that these factors have any significant impact on the cryptocurrency.
Addressing the concerns of the XRP community, pro XRP lawyer Bill Morgan argues that burning the escrow would be useless, as demonstrated by Stellar’s burning of XLM, which had no impact on its price symmetry. Similarly, the lawsuit against Ripple has had no overall impact on XRP’s price. Morgan emphasizes that external factors unrelated to either blockchain are driving the price movements of both XRP and XLM.
In response to the query, Ripple’s David Schwartz suggests that external factors play a significant role. He points out that despite Stellar’s token burn, its price remained largely unaffected. This suggests that burning XRP would not boost its price. Despite differences in supply and price between XRP and XLM, their shared history leads investors to view them similarly, resulting in their prices moving together.
Morgan also addresses the short-term impact of the lawsuit on investor sentiment. While he acknowledges that XRP’s price may fluctuate in response to news about the legal proceedings, he argues that these fluctuations do not significantly alter the long-term price symmetry between XRP and XLM. He challenges the notion that events like the Ripple lawsuit have a lasting impact on XRP’s market performance, asserting that broader market dynamics have a greater influence.
Currently trading at $0.5306 with a minor 2% decline, XRP’s price is experiencing fluctuations. If it fails to surpass the $0.5420 barrier, it may drop further. The first support is around $0.5225, and if the price falls below $0.5120 and closes below it, bearish pressure may increase, potentially leading to a further drop and a test of the $0.5025 support level. Some analysts predict a significant move for XRP if it breaks above key resistance levels such as the 100-day moving average, indicating increased buying interest and potentially driving up the price.