- The upcoming SEC hearing could significantly impact XRP’s value, either propelling it higher or dragging it down further.
- Despite the uncertainty, many traders are choosing to open long XRP positions.
- As the hearing approaches, bullish sentiment around the token has decreased.
As the SEC hearing looms, the future of XRP hangs in the balance. Traders are betting on a positive outcome, but the market sentiment suggests caution.
SEC Hearing: A Turning Point for XRP?
The U.S. Securities and Exchange Commission (SEC) is set to respond to Ripple’s remedy-related opposing brief on the 6th of May. The outcome of this hearing could significantly impact the value of XRP, Ripple’s native token. Over the weekend, there were no updates on the matter, allowing XRP to bank on the $0.49 support and hit $0.52. However, the price could fluctuate depending on the hearing’s outcome.
Traders Betting on Positive Outcome
Despite the uncertainty surrounding the hearing, many traders are choosing to open long XRP positions. This is evident from the positive Funding Rate data provided by Santiment. If XRP’s price increases, these traders stand to gain from their positions. However, a drop in the token’s value could result in losses.
Declining Network Growth
While traders remain bullish, on-chain data shows a decline in network growth. This metric tracks the number of new addresses making their first transaction. A decrease suggests that XRP is not gaining traction, which could slow demand for the token and hinder a major price upswing.
Conclusion
The upcoming SEC hearing is a crucial event for XRP. While some traders are betting on a positive outcome, the overall market sentiment is cautious. With declining network growth, it remains to be seen whether XRP can attract new users and increase demand. Regardless of the outcome, the hearing is likely to bring some resolution to the long-standing lawsuit between Ripple and the SEC.
