- The price of XRP has been hovering around $0.5 for several months despite encouraging news for Ripple.
- Industry experts suggest that the conclusion of Ripple’s lawsuit with the SEC could be the key to breaking this stagnation.
- Former Ripple director, Sean McBride, asserts that significant price movement is unlikely until the legal issues are resolved.
Will Ripple’s ongoing legal saga determine the future price trajectory of XRP?
Ongoing SEC Lawsuit Weighs Heavily On XRP
The prolonged legal tussle between Ripple and the SEC has severely impacted XRP’s market performance. Despite achieving a partial victory in July 2023, which saw the price briefly spike to $0.90, the cryptocurrency has been unable to sustain any significant upward momentum. Currently, XRP trades below $0.50, unable to capitalize on periods of bullish market sentiment.
McBride continues to emphasize that the fate of XRP’s price largely hinges on the outcome of the ongoing lawsuit. The crux of the matter is whether XRP’s sale to institutional investors will be classified as a securities transaction. A clear and favorable ruling by Judge Torres could pave the way for institutional entities to engage confidently with Ripple and XRP.
“Nothing significant is going to happen with the price of XRP until Judge Torres makes her decision,” said McBride, reiterating the need for regulatory clarity to instill confidence among potential institutional investors.
What Will It Take For XRP Price To Break Out of Its Slump?
The resolution of the SEC lawsuit remains the primary catalyst for a potential breakout in XRP’s price. A settlement or a favorable court decision could remove the existing uncertainty, potentially driving the price significantly higher. However, the market also needs to see if Ripple can outpace other cryptocurrencies to reclaim its lost standing over the past three years. Conversely, an adverse ruling could further depress XRP’s value.
Crypto analyst EGRAG CRYPTO has posited that it might only be a matter of time before XRP reaps the benefits of rotational profits in the cryptocurrency sector. According to this theory, XRP may break out of its current descending triangle pattern and could aim for ambitious targets such as $7.5.
Conclusion
In summary, XRP’s current price stagnation appears intrinsically linked to the unresolved SEC lawsuit. A clear resolution, particularly a favorable one for Ripple, would likely act as a significant catalyst, driving institutional interest and potentially resulting in a price surge. Until then, XRP holders may continue to experience a period of uncertainty and volatility.
