Can XRP reach the $1? Exploring the potential and challenges

XRP is currently exchanging hands at $0.6267, an increase of 0.81% in the last 24 hours. There is a slight chance that it may surpass the $1 mark. However, that is bound to happen eventually, with no definite timeline in any form. That does not undermine the way it has performed in the market. The token has jumped by 65.91% in the last 12 months and stands at a market cap of more than $33 billion.

Two aspects will determine how and when XRP breaks the milestone. The first instance is the Ripple Payment Network. The Ripple Payment network facilitates instant and cost-effective cross-border payments. The model has been able to secure significant partnerships. XRP tokens back to the Ripple Payment network. It was a huge concept three years ago, and expectations were that it would touch the sky in the days to come.

A reason why that did not happen or has not happened is what forms the second aspect—a legal battle with the US Securities & Exchange Commission.

The Commission is attempting to classify XRP as an unregistered token. Assuming the case goes through, XRP will lose a lot of investors, and the price of XRP will be severely affected. There is a minor chance that Ripple may win the court case. If that happens, the investors holding onto their XRP tokens in portfolios will fetch better profits.

That would result in XRP reaching the $1 threshold and easily transcending it. Once more, XRP has approached that milestone. During that period in July, the market value of an individual token was $0.95. Bear in mind that during the winter season, most crypto market participants were pessimistic about their portfolios.

Ripple is closer to winning the case. That being said, the SEC is less likely to drop the egg from the terrace without any protection. Meaning, this is a high-profile case, and a lot is at stake. The Commission will be extra careful in letting the case go into their hands. Reports that are surfacing claim that a settlement between the Commission and Ripple could be $770 million.

Whether Ripple agrees to it is yet to be seen. The crypto venture has contemplated that fighting the SEC in court will cost them ~$200 million above the settlement price. This will take the total cost to ~$1 billion, which could otherwise be invested in innovation. The XRP coin price prediction estimates that the token can end this year at $0.98. That is still closer to the $1 mark under current conditions. Needless to say, volatility can spoil the token without any prior notice.

Even so, Ripple might wish to reassess its strategy for advancing the legal dispute with the SEC. Although the achievement of the milestone is appealing, they would prefer not to do so in a manner that would damage their reputation or alienate their community from the ecosystem.

David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.

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