Fake News, Real Impact: How XRP Reacted to Phony Blackrock News
On late November 13, the cryptocurrency XRP experienced a brief surge of 12% in value, rallying to $0.73, following widespread speculation fueled by a purported BlackRock filing. The filing hinted at the creation of an XRP exchange-traded product, specifically the “iShares XRP Trust,” suggesting a potential precursor to an exchange-traded fund (ETF).
However, the excitement proved short-lived as Bloomberg ETF analyst Eric Balchunas confirmed the filing to be a fake after consulting with BlackRock. Within half an hour of this revelation, XRP relinquished all its gains, highlighting the impact of misinformation in the cryptocurrency market.
XRP Daily Chart Analysis
- XRP bullish on daily chart, above 50-day and 200-day EMAs.
- Potential for a move to $0.7047 resistance if it returns to $0.6720.
- Ongoing focus on SEC v Ripple case-related discussions after court order.
- Downside risk if XRP falls below $0.65, targeting $0.6354 support.
- 14-day RSI reading at 63.17 indicates potential move to $0.67 before overbought conditions.
During the Fake NEWS spread = 4 hourly chart
- XRP maintains bullish stance on 4-hourly chart, above 50-day and 200-day EMAs.
- Bullish momentum may continue with a return to $0.67, targeting $0.7047 resistance.
- Downside risk if the 50-day EMA is breached, activating $0.6354 support.
- 4-hourly RSI reading at 47.84 indicates potential XRP drop to $0.6354 before entering oversold territory.
Court Issues Schedule for Remedies Discovery and Briefing
This latest development in the SEC v Ripple case brings the legal proceedings closer to resolution, with Judge Torres establishing a schedule for remedies discovery and briefing. The court order mandates that the SEC and Ripple complete remedies-related discovery by February 12, 2024. The SEC is required to file its brief by March 13, 2024, and Ripple by April 12, 2024, with the SEC allowed to file a reply by April 19, 2024.
Notably, these timelines may halt any SEC plans to appeal the Programmatic Sales ruling. Despite dropping charges against Ripple co-founder Chris Larsen and CEO Brad Garlinghouse, the SEC’s focus on expediting the case suggests a potential emphasis on appealing the Programmatic Sales ruling. Meanwhile, amid these legal updates, the XRP market faced volatility on Monday, influenced by fake news.
The XRP fake news incident underscores the susceptibility of cryptocurrency markets to misinformation. In this case, a false report about BlackRock filing for an XRP exchange-traded product led to a significant but short-lived surge in XRP’s value. The incident highlights the importance of verifying information and the potential impact that unverified news can have on market behavior. Traders and investors should exercise caution and rely on credible sources to avoid reacting to misleading information, as demonstrated by the rapid reversal of XRP’s gains once the news was confirmed to be false.