Ripple’s XRP is one cryptocurrency that has much potential. Since its launch crypto experts have predicted that it would be one of the most profitable cryptocurrencies. However, its legal battle with the United States SEC hindered its growth in the market. This year XRP has been one of the worst performers after recording losses for the greater part. While bitcoin and ETH have large yearly gains the XRP value has only risen by 11.3%. Its “victory against” the SEC will likely help push its price up.
Ripple’s Legal Victory
Many investors and experts view the paltry penalty charged on Ripple as its victory against the SEC. A United States court has asked Ripple to pay only $125 million as penalty in its case against the United States Securities and Exchange Commission. In 2020 the SEC filed a lawsuit against Ripple for selling XRP without registration, as it deemed the crypto asset to be a security. However, a court ruled that the programmatic sales of XRP to retail investors through the exchanges does not constitute an investment contract. Now, the market believes that the XRP value will likely surge due to social momentum.
Currently, XRP with a market capitalization of about $34 billion, is the seventh largest cryptocurrency. Sadly, despite the expected upward momentum following the April bitcoin halving event the XRP price was generally in a downtrend. Currently, it has lost by about 3.7% within the last 30 days and by 1.6% within the last 24 hours. XRP has lost 80% of its all-time-high value of $3.84 attained in 2018. Anticipating that the XRP price may rise again to that price level, it could be a good time to buy the dip. Although many investors targeted Solana in the first half of 2024 some of them may shift to XRP in the second half.
XRP Market Performance
At the time of writing XRP is trading at $0.5845 XRP/USDT at Gate.io, after losing by around 2% within the last 24 hours. Basically, the entire cryptocurrency market is performing sluggishly after having a gainful last week. Looking at the different time frame charts the XRP market is depressed. The following monthly chart shows a bearish outlook.
XRP Monthly Chart – CoinGecko
As observed on the graph, XRP is in a downtrend. Several times during the month it failed to breach the $0.62 key resistance level. However, it also looks as if it may fail to break below the $0.57 key price floor. If it breaks below that level it may fall further towards $0.54.
The SEC’s response to the court ruling will likely determine the XRP price trajectory in the coming weeks. Currently, the SEC has not yet hinted if it will appeal the ruling or not, leaving the entire crypto market in the dark. After the Ripple vs. SEC lawsuit ruling the market has turned its attention to Ripple’s On-Demand Liquidity (ODL). The On-Demand Liquidity is Ripple’s key product that will promote the international transfer of funds.
XRP Price Prediction: Will the Uptrend Continue?
The fact that the XRP price has just risen by a very small margin after the ruling shows that there is still skepticism in the market. Currently, the XRP price is a few cents below its 50-day Exponential Moving Average (EMA) of $0.596 which is also a key resistance level. If it manages to break above that level it may target $0.6. However, the XRP relative strength index is within the neutral zone, showing very low prospect of a sudden price increase.
A strong rally can only be confirmed if the price rises above both $0.62 and $0.63 that mark a strong resistance zone. From there, it may target the next resistance area that lies between $0.66 and $0.70. However, this price movement is likely to happen if Ripple launches XRP for ODL. The launch of ODL means that much XRP will be locked into Automated Market Makers (AMMs) which will reduce the XRP tokens that are available for third parties. As a result, its price may rise. However, if the SEC appeals against the ruling that reduces XRP’s chance of launching the ODL. With that, there will be a low chance of mass adoption of the cryptocurrency.
There is a good chance that the XRP price may double and surge above $1 within a short time. For example, last summer its price doubled after rumours of its victory against the SEC. Considering that Ripple is a big and ambitious company there is a high chance that XRP may maintain a bullish outlook if its case against the SEC is cleared. There is also speculation of an XRP spot ETF. In addition, we should remember that Ripple has partnered with many financial institutions that have plans to incorporate the coin into their systems. We also need to remember that recently Ripple has tested its stablecoin which may bring in a new dimension into the XRP matrices. if these developments occur the XRP price may surpass $1.