Key Takeaways:
- Ripple Labs expanded its global presence by investing in European exchange Bitstamp
- XRP price is struggling to keep above EMA support.
NEW DELHI (CoinChapter.com) — Ripple Labs focuses on expanding its global operations as its legal battle with the US Securities and Exchange Commission continues. The blockchain-based payment platform has bought a stake in a European cryptocurrency exchange, Bitstamp.
Ripple’s expansion plans could be linked to its efforts to establish a strong global presence in case the SEC lawsuit does not pan its way. Digital investment firm Galaxy Digital revealed in its Q1 2023 report that it advised on the deal.
Ripple bought Pantera Capital’s minority stake in Bitstamp in the deal. Pantera was among the largest shareholders in Bitstamp before selling part of its stake to NXMH in 2018.
We advised Pantera, a leading blockchain asset management firm on the sale of its stake in European digital asset exchange Bitstamp to Ripple Labs in Q1. Executing on a deal with this complexity, post FTX, reinforces our position as a leading investment bank for digital assets
Christopher Ferraro, President and Chief Investment Officer at Galaxy Digital, said in a shareholders call.
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However, the deal’s details remain unclear, including the amount Ripple paid for the shares.
XRP Price Remains Bearish
Meanwhile, news of the acquisition failed to uplift XRP price action, with the token price dropping nearly 5% from May 24’s daily high of $0.465 to $0.443 on May 25. XRP price’s bull run between May 14 and May 20 ran out of juice near $0.472.
The rally helped bulls break above XRP price’s 20-day EMA (red wave) and 50-day EMA (purple wave) trendlines. However, the bears’ aggressive presence forced the XRP price back below the EMA resistances.
If the downtrend continues, the Ripple token price could drop to its 200-day EMA (green wave) support level near $0.437. Moreover, the failure of the immediate support level might force the XRP price to test support near $0.42 before recovering.
However, if the bulls keep the XRP token price above its 100-day EMA (blue wave), the Ripple token could rally to target the 50-day EMA (blue wave) resistance near $0.46.
A break and hold above its immediate resistance would give XRP price the impetus to reach $0.477 before downside corrections pare gains.
The RSI for XRP remained neutral, clocking at 47.06 on the daily charts.
