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Wealth Advisor Reveals Why Ripple’s ODL Could Influence XRP Prices
Author: Nidhi Kolhapur
Aug 24, 2024 19:13
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XRP Price Retest Confirmed
Will Ripple’s ODL impact XRP Prices? Well Mickle, a notable wealth advisor and market commentator, recently took to X to share why he believes that Ripple’s ODL will impact the XRP prices. His arguments are contrary to claims that the buy and sell dynamics involved in ODL transactions cancel each other out.
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Mickle Highlights A Crucial Aspect
Mickle highlighted that while some critics argue that the buy and sell transactions in ODL are neutral to XRP’s price, they are missing out on a crucial aspect. In his opinion, this is the necessity for market makers to hold reserves of XRP. Market makers, who facilitate these transactions, must accumulate XRP to ensure they can meet demand. As ODL transactions increase globally, the demand for XRP among market makers also rises, leading to higher accumulation of the token.
Mickle argues that this will naturally drive up the price of XRP. He further asserts that the expansion of ODL globally will necessitate even more market makers to hold XRP in their reserves. The increased demand, combined with the finite supply of XRP, should logically result in an upward pressure on its price.
Eri Counters Mickle’s View
Although Mickle is optimistic about the impact of ODL on XRP’s price, Eri, a well-known figure in the XRP community, pointed out in a response that Ripple itself has indicated in court documents that ODL transactions are largely demand-neutral.
Ripple’s disclosure, mentioned by Eri, suggests that ODL transactions, which involve the simultaneous purchase and sale of XRP, do not significantly affect its price. This is because each ODL transaction involves the purchase and sale of the same amount of XRP within a short timeframe, effectively neutralizing any impact on the token’s market value.
Eri also highlighted that Bob Way, who Mickle referred to in his argument, exited Ripple before significant changes were made to ODL’s operational flow and therefore Ripple’s current system for managing ODL transactions varies from the setup before.
Will SEC Appeal In The Ripple SEC Case?
In the light of recent developments, Mickle also shed light on Kraken’s case where it took a bad loss earlier today against the SEC. Ripple beat the SEC in the district court and if the SEC were to appeal the ruling, they would go to second circuit. And if the SEC took the Ripple case to second circuit, they could sink their chances in any other ongoing cases and their precedent would be a losing case for the SEC.
Hence, according to Mickle, the SEC might be more cautious about appealing the Ripple case to avoid setting a precedent that could weaken its position in other ongoing cases.
