XRP-SEC Battle Continues: Will XRP Price Be Affected Further?
XRP is recalled as one of the toughest competition to Bitcoin’s price rally in 2017 and 2018. The only coin that promised a higher return than BTC was XRP, and investors flooded onto this cryptocurrency. However, once the dust cloud settled, XRP price succumbed to profit-booking and panic-selling to one-tenth of its peak value.
While prices have improved significantly, XRP has become more of a transaction value coin with lower gas fees rather than a growing cryptocurrency economy. Moreover, the initial alignment with XRP because of lower gas fees was also exploited by developing blockchain and cryptocurrency networks.
The SEC lawsuit will have a much lengthy conclusion. Since the securities exchange has deemed XRP as a security, the complications arising from the Ripple loss could have an industry-wide impact.
At present, Ripple CEO Brad Garlinghouse seems optimistic about the developments; during the latest ruling, the presiding judge has ruled out SEC’s attempt to edit the content of e-mails that showcased a partial behavior towards XRP compared to ETH and other similar tokens.
Ripple views XRP as a virtual asset, and only 5% of US investors account for the total market capitalization held by others, so the SEC could be out of its legal constraints. Moreover, SEC stands that BTC and ETH are virtual assets while XRP is a security asset, which could complicate matters for other cryptocurrencies in the coming days.
XRP price trend is consolidative with a higher profit-booking tendency since February 2022. Currently, the 200 DMA has become the greatest foe to any upside momentum. Considering the fundamental developments of the SEC lawsuit, it might take XRP a little more time to offer a bullish price trend. Read more about Ripple price prediction here for a detailed technical and price analysis.
2022 was expected to turn the tables for XRP, but it has failed to work any wonders for XRP enthusiasts so far. Consolidating prices, sudden sell-offs, and other challenges have made it difficult for investors to keep attachment to XRP.
After taking support from the lower end of consolidation, there has been a slight recovery at $0.70. XRP needs to stabilize above $1 to bring investors, but considering the declining 200 DMA curve, one can estimate the overall growing negative sentiment on XRP irrespective of its fundamental potential.
