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Saturday, March 6, 2021

Ripple (XRP) breaks support as the platform faces lawsuit in Australia

  • Ripple (XRP) price broke below key short-term support at $0.27 yesterday, as sellers take control
  • An Australian financial services company is suing Ripple Labs on trademark infringement allegations
  • XRP/USD has returned higher to the broken support, which now acts as resistance

Ripple (XRP) price broke below key short-term support at $0.27 as the sellers assumed control of the price action. In the meantime, the crypto giant is facing a lawsuit in Australia.

Fundamental analysis: Legal troubles for Ripple

A large Australian financial services company is pressing charges against the crypto company Ripple Labs on trademark infringement allegations.

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The payments firm New Payments Platform Australia (NPPA) said in a court document filed on Friday that Ripple violated Australia’s Trade Marks Act (1995) and the Australian Consumer Law with the improper use of its brand and trademark known as “PayID.”

The Australian company claims that it rolled out its PayID brand in Australia back in 2018 and invested around AU$3.3 million in the advertising campaign and worked on developing the brand ever since.

Adrian Lovney, Chief Executive of NPPA said he noticed that Ripple had rolled out a service very similar to NPPA’s PayID under its Open Payments Coalition (OPC) with 40 partners from around the world, 3 of which are located in Australia –  FlashFX, BTC Markets and Independent Reserve, according to the document.

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Lovney said that there’s evidence that those three companies “incorrectly believed” there was a connection between services provided by his company and those offered by Ripple under the PayID trademark.

NPPA uses the PayID to identify its service and the account proxies that create some of its inter-banking solutions.  Customers can use the PayID to develop their own unique identifier and link it with their financial institution via an email address, mobile number or Australian Business Number.

According to NPPA, around 5 million PayIDs had already been registered and it encompasses a significant part of Australia’s NPP, a payments solution developed by the NPPA.

NPPA is a joint venture public company co-owned by 13 of Australia’s major financial companies including the Reserve Bank of Australia, ANZ Bank, Westpac and Commonwealth Bank.

Technical analysis: XRP breaks support

XRP/USD fell over 4% yesterday to close below the horizontal support line at $0.27. This could be an important technical development in the short-term as the sellers are now in control of the price action.

The price action has pushed nearly 2% higher today to return to the broken support, which now acts as resistance. A failure to return above $0.27 could pave the way for a deeper pullback. The buyers will be hoping that the price action could dip to $0.2350 which would offer a great chance to invest in XRP.

Summary

New Payments Platform Australia (NPPA), an Australian financial services company is suing Ripple Labs on trademark infringement allegations over NPPA’s PayID service. In the meantime, XRP/USD broke below important support at $0.27.

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