Nasdaq-listed company Workport Limited has announced plans to adopt Ripple's XRP and Bitcoin as corporate financial assets. Ripple's battle with the SEC could end with the reappointment of new chairman Paul Atkins. XRP could rebound from the $1.96 support level amid recent decline.
Ripple’s XRP fell 5% on Thursday after tonneau cover maker Worksport announced it would add remittance-based tokens as part of its treasury.
XRP falls amid Workport plans to add XRP as treasury asset
Following in the footsteps of business intelligence company MicroStrategy, Nasdaq-listed company Worksport plans to adopt Bitcoin and XRP as part of its corporate finances.
In a blog post Thursday, the tonneau cover maker said it is pledging up to $5 million to buy Bitcoin and XRP.
The company said this strategic move aims to improve trading efficiency while underscoring long-term confidence in cryptocurrencies as a store of value and a hedge against inflation.
“Our future adoption of Bitcoin (BTC) and XRP (Ripple) reflects our commitment to staying ahead of market trends while prioritizing operational efficiency and shareholder value,” said Workport CEO. Stephen Rossi said.
This coincides with the increasing global acceptance and institutional adoption of digital assets.
Workport's adoption of XRP as part of its corporate finances is a major win for the asset, especially in light of ongoing litigation with the Securities and Exchange Commission (SEC).
The SEC appealed Judge Annalisa Torres' ruling that XRP sold to retail investors does not qualify as a security. She also reduced the SEC's $2 billion fine against Ripple to $125 million.
The SEC's appeal challenges portions of the ruling, but does not challenge XRP's non-secure status.
However, there is growing optimism in favor of Ripple Labs following the presidential election, especially after SEC Chairman Gary Gensler revealed that he would step down from his position at Ripple Labs on January 20th.
President-elect Donald Trump has already nominated Patomac Global Partners CEO Paul Atkins to replace Gensler.
Several top figures in the cryptocurrency industry have expressed support for Trump's choice of successor, including Ripple CEO Brad Garlinghouse.
Great pick – Paul Atkins taking over the SEC will bring common sense back to the SEC. With Hester Peirce and Mark Ueda, it's time to quickly and decisively end the era of crypto prohibition and restore freedom of choice, economic growth, and innovation. https://t.co/w8Rqrnubyj
— Brad Garlinghouse (@bgarlinghouse) December 4, 2024
The pro-crypto SEC may quickly resolve its lawsuit with Ripple and establish better relations with the cryptocurrency industry.
XRP could rebound from $1.96 support level amid recent selloff
XRP has fallen over 5% in the past 24 hours, causing $55.26 million in liquidations. The amount of liquidated long positions amounted to $42.3 million, while the amount of liquidated short positions accounted for $12.96 million.
XRP/USDT daily chart
As XRP struggles to regain the $2.58 level, it could bounce back from the 14-day exponential moving average (EMA). If the remittance-based token falls below the 14-day EMA, it could find support near $1.96. This support level also coincides with the 0.382 Fibonacci retracement level.
The Relative Strength Index (RSI) is in overbought territory but is trending down, indicating that bullish momentum is weakening.
If the daily candlestick closes below $1.96, the theory is invalidated and XRP is sent towards $1.35.
