Ripple Strengthens Market Presence With Investment In Bitstamp
The popular blockchain technology company, Ripple, has recently purchased Bitstamp shares. This was revealed after Galaxy Digital revealed its quarterly report.
The acquisition involved shares previously owned by an American investment firm, Pantera Capital, specializing in digital assets and asset-focused companies.
Ripple Commits To Network Expansion Amid Issues
Despite facing a long-standing legal battle with the US Securities and Exchange Commission (SEC), Ripple remains committed to its growth objectives.
Ripple’s CEO, Brad Garlinghouse, once noted that the company possesses approximately $1 billion in reserves, which it can use for expansion initiatives.
The recent acquisition of Bitstamp shares aligns with the firm’s ongoing efforts to pursue growth opportunities in the ever-evolving digital asset landscape.
Notably, the President and CIO of Galaxy Digital, Christopher Ferraro, mentioned Ripple’s move in a shareholder update conference call held on May 9.
Also, an influencer within the community, WrathofKahneman, highlighted the purchase and pointed out that it should not be viewed as a mere acquisition.
His tweet attracted speculations about Ripple’s recent move, particularly whether the company wishes to continue with its On-Demand Liquidity (ODL) objectives or improve its Liquidity Hub (LH) solution.
In the meantime, Bitstamp remains one of Ripple’s longstanding partners for On-Demand Liquidity (ODL), further solidifying their existing collaboration.
Earlier this year, Bitstamp expanded its services on the XRP Ledger (XRPL) by integrating EUR-backed IOUs into the network.
Ripple XRP Shows Bearish Signals Despite Expansion Moves
XRP is currently trading in a negative trend as of May 24. The asset’s price below the $0.5 mark depicts a loss of 3.20% in the past 24 hours.
Also, the current position of XRP below the 50-day Simple Moving Average (SMA) suggests a short-term bearish trend. It indicates that the XRP price has been declining recently. However, XRP trades above the 200-day SMA, indicating the possibility of a long-term bullish movement after the bearish trend.
So, while the short-term outlook for XRP may be bearish, there is potential for a reversal and upward movement in the long term.
The Relative Strength Index (RSI) is currently at 46.59, indicating a neutral state and suggesting that XRP is not strongly overbought or oversold.
The RSI’s overbought and oversold regions are typically at 70 and 30, respectively. But with the RSI facing downward, there is a possibility of downward price movements to the oversold region before a trend reversal occurs.
Meanwhile, the Moving Average Convergence Divergence (MACD) stands above the signal line, which is a positive sign. It indicates momentum in the upward direction, potentially indicating a price increase.
However, this may not stand for long, given that the token trades below the 50-day SMA.
Featured image from Pixabay and chart from Tradingview.com