XRP Faces Pressure Amid Geopolitical Tensions, Ripple and SEC Seek Custody Release
XRP is currently trading around $2.14, as of Friday, as cryptocurrency investors navigate increased volatility due to geopolitical tensions in the Middle East. A sharp price drop below the $2.20 support level triggered significant liquidations, causing a plunge in the Open Interest (OI) of futures contracts.
The price decline coincides with escalating conflict between Israel and Iran. Reports indicate that Israel launched an attack targeting Iranian nuclear facilities, ballistic missile factories, and military commanders. Iran responded with drone strikes on Israeli territory, prompting Israel to declare a state of emergency.
Ripple and SEC File Joint Motion to Release $125 Million in Escrow
Ripple and the U.S. Securities and Exchange Commission (SEC) have jointly filed a motion in the U.S. District Court for the Southern District of New York. They are requesting Judge Analisa Torres to dissolve the injunction in their ongoing case and release the $125 million civil penalty held in escrow.
The motion proposes that $50 million be paid to the SEC, with the remaining funds returned to Ripple, reflecting an agreement reached earlier in May. According to the filing, “if the Court issues the requested indicative ruling, the SEC and Ripple will move to the United States Court of Appeals for the Second Circuit for a limited remand to seek relief.”
The Court previously denied a joint motion from Ripple and the SEC on May 8, citing the parties’ failure to address whether “exceptional circumstances” justify modifying the final judgment. The judgment penalized Ripple $125 million for violating securities laws when the company sold XRP directly to institutional investors.
Ondo Finance recently announced the launch of its short-term U.S. Treasury bonds (OUSG) on the XRP Ledger (XRPL). OUSG aims to bridge the gap between Decentralized Finance (DeFi) and traditional finance, allowing institutional investors on XRPL to gain exposure to short-term U.S. Treasury bonds.
Technical Outlook: XRP Holds Above Critical Support
XRP’s price is hovering around $2.14 after a slight recovery from support near $2.09, bolstered by the 200-day Exponential Moving Average (EMA). However, this rebound remains uncertain, with the Relative Strength Index (RSI) falling below the 50 midline and staying below the descending trendline.
Key levels of interest include the descending channel’s mid-boundary, currently acting as immediate support, and the 200-day EMA at $2.09, which could prevent further losses below the critical $2.00 level.
XRP/USDT Daily Chart
If the geopolitical situation in the Middle East improves and the broader cryptocurrency market sentiment shifts, traders might consider buying XRP. A rebound from the current price level of $2.14 could target a recovery towards the $2.34 barrier and the $2.50 seller congestion area, representing a potential 17% increase from the current market value.
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