XRP Gets a Beatdown, Slips from Third Place as Price Is Looking Down in White Space
- USDT balance on crypto exchanges reached an ATH of 1,228,582,096.528 USDT on 14 March 2020
- The court ruled against Ripple which sought to have the claim dismissed that Ripple Labs was the issuer of XRP tokens
XRP has lost its 3rd place to Tether (USDT), a popular stablecoin and much like the digital asset controversial.
Last week, the crypto market endured a violent sell-off that not only resulted in Bitcoin seeing its highest percentage loss in 7 years but also XRP crashing to $0.11 level last seen in May 2017. Currently, XRP/USD is trading at $0.153.
In the past 7-days XRP has lost 34% of its value while being down 48% in the past month.
According to veteran analyst Peter Brandt, XRP is looking into a “white space.” If XRP price takes yet another hit, there might be no other levels to support it from further decline. In early 2018, the price of the crypto asset went straight up to $3.90 and since then has lost 96% of its value.
I am breaking a promise.
I said I would never again post a chart of $XRP
But, I thought you all might be interested in what it means to have …
"While space below" pic.twitter.com/Pse2DkEXfp
— Peter Brandt (@PeterLBrandt) March 12, 2020
Another way to look at it is “almost everyone who has bought XRP since May 2017 has a loss. Now, that is an impressive performance,” said Brandt.
The analyst didn’t predict any price targets for the digital asset but isn’t optimistic about its price. According to Brandt, “XRP is not a true crypto,” which he says is “manipulated” and believes this crypto asset is more of a religion than any other coin.
The extreme sell of the XRP has the most devoted of its community members turning their back to this cryptocurrency. Tiffany Hayden, who was once one of XRP’s passionate supporters recently sold all her holdings and disassociated herself from the community.
An important milestone for Tether
This severe crackdown had the digital asset losing its third place to Tether, which surpassed a market capitalization of $5 billion. This comes as no surprise amidst the ongoing crypto bloodbath in line with the stock market and gold as the deadly coronavirus spreads fast.
“This important milestone confirms Tether’s place as the pre-eminent stablecoin, with the biggest market capitalization,” reads the statement put out by Tether on Twitter.
Besides XRP tanking, there has also been a surge in interest in Tether. The USDT balance on the exchanges (1day MA) also reached an all-time high at 1,228,582,096.528 USDT on March 14. Tether (USDT) also remains the second most heavily traded cryptocurrency after Bitcoin, which at one point was five times Bitcoin’s trading volume.
All this has been while the company remains in the midst of a fraud investigation led by the New York Attorney General’s office (NYAG) which is also investigating Tether’s sister company, crypto exchange Bitfinex over allegations that it lost $850 million.
Not to forget that Tether's claim of being “fully backed” by dollar reserves came out to be only 74% true.
In the meantime, the company is also struggling with a class-action lawsuit that accuses Tether of $1.4 million of damages for manipulating the price of Bitcoin in 2017.
Another Hit to Ripple
In another news, the court ruled against Ripple who sought to have the claim that it violated California’s Unfair Competition Law (UCL) dismissed. Ripple wanted the dismissal on the grounds that the plaintiff failed to demonstrate that his XRP tokens were purchased “as part of an initiation distribution,” and that Ripple Labs qualified as a “seller.”
However, the court ruled against the San Francisco-based tech company supporting the plaintiff’s claim that Ripple Labs acted as a seller in issuing XRP but didn’t support his allegations of misrepresentation under the California Corporations Code.