Impact of SVB Collapse on Ripple Crypto?

RippleThe CEO recently confirmed the exposure to SVB, Silicon Valley Bank, which collapsed on Friday 10 March. Thus, it begs the question what impact this will have on the XRP token and more generally on the entire crypto sector.

Crypto News: Ripple’s Exposure to SVB

The XRP token has been threatened by the recent revelation that Ripple was exposed to SVB, or Silicon Valley Bank, which was shut down this Friday by the Federal Deposit Insurance Corporation after suffering a withdrawal.

In any case, with the intervention of the Federal Reserve and the US Department of the Treasury, which assured SVB customers full access to their deposits from Monday. Investors calmed down and returned to invest in crypto so that the market could recover.

Later, Ripple revealed that it had “some exposure” to Silicon Valley Bank. That exposure could have hurt the company significantly. But the joint statement from the Federal Reserve, the US Treasury and the FDIC revealed that SVB’s (and Signature Bank’s) customers will have access to all their money starting Monday, March 13.

Therefore, as a result, the crypto market recovered somewhat on Sunday and XRP did not fall further. Moreover, as US regulators have stepped in to prop up the banking system, it seems that there will be no more bank failures in sight.

Therefore, XRP can continue to look forward to the resolution of Ripple’s case with SEC.

Just last week there was a positive development for the company. With judge Analisa Torres comply with the company’s request for removal Patrick Doody as a witness and denies the SEC’s request to exclude counsel John E. Deaton as a witness for Ripple.

Focus on the price of Ripple (XRP)

Over the past 24 hours, the value of XRP has risen, climbing 6%, after recovering from a massive drop over the past weekend. Currently, XRP is on $0.373344 level.

This means it has seen prices rise in a week by 3.4%, dragged down by the market crash due to the Silvergate Bank failure and just now up after Bitcoinits recovery.

Although XRP has not performed as well as other cryptoassets, the token still has a bright future ahead of it as Ripple awaits a successful conclusion to its lawsuit with the SEC.

From the indicators, it seems that XRP will register a rebound sooner or later, as its 30-day moving average (in red) has fallen significantly below its 200-day moving average (in blue).

XRP’s relative strength index (in purple) has also dropped from 50 to nearly 40, indicating that it is close to oversold. However, XRP has yet to bottom, so the crypto may not have a real recovery until the RSI reaches 30 or less.

The main reason for XRP’s bad weekend was the collapse of Silicon Valley Bank, whose failure only worsened the situation created by Silvergate collapse.

But the negativity didn’t end there, like Signature bank was also closed on the weekend. With state regulators, the New York-based lending institution is closing on Sunday.

Given that after the Silvergate issues, some crypto exchanges had moved to Signature, this third failure spells trouble for the entire blockchain industry.

Ripple vs SEC: latest developments in brief

Ripple’s small wins in recent times have added to the other positive developments of the past year, adding to the sense that Ripple could get a favorable ruling or settlement against the SEC.

For example, last year the court granted Ripple access to key SEC emails, while upholding the company’s right to use a “fair notice defense.”

Also with Ripple’s Brad Garlinghouse predicts that the case will end this year, it may not be long before XRP receives the kind of encouraging news significant rally.

Immediately after the case, we can expect XRP to rally again to $0.5 or even beyond. If the rest of the market also begins a recovery, the crypto may even surpass the January 2018 high of $3.40.

This is a real possibility, especially since XRP missed the bullish market in 2021 and Ripple’s activity continues to do well despite the current issue.