The price of XRP has gained slightly in the past 24 hours, rising by 0.5% after the coin recovered from a significant fall this past weekend.
At $0.363344, XRP has dropped by 1.5% in a week and by 5% in the last 30 days, with the coin dragged down by the market-wide selloff following the collapse of Silvergate Bank.
Yet XRP has also been threatened by the revelation that Ripple had some exposure to another collapsed financial institution, Silicon Valley Bank, which was shut down on Friday by the Federal Deposit Insurance Corporation after it suffered a run of withdrawals.
However, with the Federal Reserve and US Treasury stepping in to assure SVB’s customers that they will have full access to their deposits from today, investor’s nerves have been calmed, with the crypto market witnessing a recovery since Sunday.
And while XRP hasn’t matched the performance of the other major coins today, the token still has a potentially bright future ahead of it, with Ripple awaiting a positive end to its long-running case with the SEC this year.
XRP Price Prediction as Ripple CEO Confirms Exposure to Silicon Valley Bank – What Does This Mean for XRP
One positive piece of news is that XRP’s indicators suggest that it’s due a rebound sooner or later, with its 30-day moving average (red) now dropping significantly below its 200-day (blue).
At the same time, XRP’s relative strength index (purple) has descended from 50 a few days ago to nearly 40, indicating that it’s close to becoming oversold.
However, it’s still not quite at a bottom, so the coin may not mount a real recovery until its RSI reaches 30 or below.
As stated above, the main reason for XRP’s bad weekend was the collapse of Silicon Valley Bank, the failure of which has only worsened the negativity created by the earlier collapse of Silvergate Bank.
In fact, the negativity doesn’t end there, because Signature Bank also failed over the weekend, with state regulators closing New York-based lender on Sunday.
Given that some crypto-exchanges had moved over to Signature following Silvergate’s difficulties, this third tech-friendly bank failure creates problems for crypto.
As for XRP, Ripple has revealed that it had “some exposure” to Silicon Valley Bank.
Such exposure could have hurt Ripple substantially, yet a joint statement from the Federal Reserve, US Treasury and FDIC has revealed that customers of SVB (and Signature Bank) will have access to all of their money starting Monday, March 13.
This statement is the reason why the cryptocurrency market saw a recovery of sorts on Sunday, and why XRP hasn’t fallen further.
And with US regulators now stepping in to shore up the banking system, there’s a relieved sense that further bank failures won’t be likely in the near future.
Because of this, XRP can continue looking forward to the resolution of Ripple’s case with the SEC.
Indeed, last week brought a couple of positive developments for Ripple, with Judge Analisa Torres granting the firm’s motion to remove Patrick Doody as an expert witness, while also rejecting the SEC’s motion to remove crypto-focused lawyer John E. Deaton as a witness for Ripple.
Such small victories all add to other positive developments Ripple has welcome over the past year or so, heightening the sense that it could secure a favorable judgment or settlement.
For instance, last year, the presiding court granted Ripple access to important SEC emails while it also upheld the company’s right to use a fair notice defense.
And with Ripple’s Brad Garlinghouse predicting an end to the case this year, it may not be long before XRP receives the kind of good news that sends it into a big bull rally.
In the immediate aftermath of the case, we can expect XRP to rise back up to $0.5 and even higher by the end of the year.
From there, a return to more decisively bullish market conditions could even see the coin pass its record high of $3.40, set way back in January 2018.
This is a real possibility, given how XRP missed out on 2021’s bull market, and how Ripple’s business continues to do well despite the ongoing case.
This article was originally published by CryptoNews.