XRP price could deteriorate with Ripple’s request for deadline extension in SEC lawsuit

• XRP price observed nearly 2% weekly losses and slightly declined to $0.5031 on Wednesday. 
• Ripple has requested the court for a one-week extension of the February 12 deadline. 
• Experts weigh in on whether Ripple’s On-Demand Liquidity corridor has traction in the US and Asia.

XRP price sustained above the psychologically important level of $0.50 even as payment giant Ripple requested to push the deadline for remedies-related discovery in the SEC lawsuit. The cross-border payment remittance firm seeks to push the deadline from February 12 to 20, according to a court filing. 

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Daily Digest Market Movers: Ripple requests deadline extension, experts speculate whether ODL is relevant

• Ripple is currently faced with two major obstacles, the ongoing SEC lawsuit and On-Demand Liquidity corridor’s utility and relevance in the US and Asia. 
• The latest development in the SEC v. Ripple lawsuit is the payment remittance firm’s application to push the deadline to February 20, according to the court filing below. 

• If the request is accepted, the deadline will be extended further and the lawsuit will go on for longer than expected by market participants. 
• Ripple’s On-Demand Liquidity (ODL) corridor is a key product for banks and financial institutions, experts are now weighing in on whether this is as relevant as the ecosystem. 
• Crypto expert and founder of dizercapital observed in a recent tweet on X (formerly Twitter) that Ripple had limited traction for their payments/ settlements use case in the US. 
• It seems that Ripple’s use case does not have as much traction in Asia either. 
• Ripple’s original use case was to serve as a bridge currency to offer institutions a cost-effective way to exchange crypto and fiat. However, bridging assets with XRP carries a risk for institutions, this has discouraged many firms from adopting XRP’s original use case. 
• There are several developments on the XRPLedger (XRPL) with little to no traction for its primary use case and this is concerning to market participants. 

Technical Analysis: XRP price is at risk of correction

XRP price is currently in a downtrend, as seen in the price chart below. The altcoin opened 2024 at a peak of $0.6410, since then XRP price has formed lower highs and lower lows. XRP price could plummet to support at $0.4856 before bouncing towards the bearish imbalance zone between $0.5392 and $0.5445. 

Once the gap is filled, XRP could continue its decline. The Awesome Oscillator (AO) is flashing its fifth consecutive green bar however the Moving Average Convergence/ Divergence (MACD) indicator notes little positive momentum. XRP price is therefore at a risk of correction. 

If XRP price breaks past the imbalance zone, it could face resistance at the 50% Fibonacci Retracement level, at $0.5633, of its decline between January 3 and 31. 

XRP/USDT 1-day chart 

A daily candlestick close above the resistance at $0.5272 could invalidate the bearish thesis for XRP price. 

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