In line with today’s general market decline, the XRP price has dropped by 3% in the past 24 hours, to $0.387535. While the XRP community waits for the outcome of Ripple’s protracted legal battle with the SEC, the cryptocurrency’s value has increased by 1% in the past week and decreased by a negligible 0.2% in the past 30 days.
Since yesterday, when the securities regulator filed suit against stablecoin issuer Terraform Labs and its (absconding) CEO Do Kwon, the market and XRP have both declined? Ripple may have a prosperous 2023 ahead of it if its case with the SEC goes well and the XRP community succeeds in convincing Coinbase to relist the token.
As XRP has Dropped 2.3% in the past 24 hours Where do you think the Price will find Support?
A downtrend for XRP seems likely to continue. After spending most of January near 70, its relative strength index (purple) has fallen below 50 in the past day and could fall further. At the same time, XRP’s 30-day moving average (red) has levelled off above its 200-day (blue) and may soon begin falling once more.
For the time being, $0.38 is the crucial support level to keep an eye on. At the beginning of this week, XRP went all the way down to approximately $0.36, its lowest price in almost a year.
This year, XRP has only dropped below $0.35 once (in early January), and this price still serves as its medium-term support level, which would only be broken in the event of a severe market downturn.
#XRP continuing the downside as expected | Will give this more time to play out | Lower targets i’m eyeing around $0.35 https://t.co/9WtVxx1n2e
— Cryptoes (@cryptoes_ta) February 13, 2023
Investors are waiting for the outcome of Ripple’s action against the SEC before drawing any firm conclusions about the company’s long-term prospects. At this point, all issues have been argued and briefed, and the case is now before Judge Analisa Torres for a decision.
In an interview given last month, Ripple CEO Brad Garlinghouse predicted that the case would be resolved by the middle of 2023 or by the end of the year at the latest. Many in the XRP community believe that Ripple will ultimately win the case and be allowed to keep operating.
The court that’s monitoring it has, for one thing, made a number of positive judgements in the case during the past year. Specifically, the court ruled in its favour on all counts, including the company’s request for access to records and communications connected to a statement delivered by then-SEC Chairman William Hinman in 2018 in which he stated that neither Bitcoin nor Ethereum is securities.
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In addition, some have argued that the SEC hasn’t shown how Ripple created a “common business,” as required under the Howey test, to increase the value of XRP. Some have stated that the SEC hasn’t been clear on what this common enterprise is, which is necessary if the agency is going to prove that Ripple marketed unregistered securities.
Ripple has a particularly strong defense on the common enterprise prong of Howey and the SEC has struggled to even assert what is the common enterprise and has changed its position on this issue in the course of the proceeding. SEC has to win on this issue to succeed in the case. https://t.co/h5OTaBlYu2
— bill morgan (@Belisarius2020) January 20, 2023
Should Ripple receives a favourable ruling, the XRP price will likely increase significantly. It will be traded extensively on exchanges that already list it, and it will be reinstated on exchanges that delisted it in December 2020 (when the SEC sued Ripple).
As an example, Coinbase has been the focus of rumours over the past few days after it was discovered that the exchange had carried out maintenance on XRP transfers (despite not offering such transfers at this time).
Just received that email from Coinbase $XRP pic.twitter.com/sQFci4QlzV
— Makori & His Friends (@moon_unchained) February 14, 2023
In part due to this upkeep, the #RelistXRP hashtag trended on Twitter, with coin backers pleading with Coinbase to reinstate XRP trading, which would benefit both the exchange and the coin.
Hey @coinbase and @brian_armstrong, I got a GREAT IDEA! Ready?
RELIST #XRP… people will go absolutely NUTS and will buy the shit out of it. You’ll be heroes and instantly collect MILLIONS in exchange fees.
THEN use that money to fight the SEC on the staking thing.
VOILA!
— XRPP (@XRP_Productions) February 10, 2023
In spite of delisting XRP (for legal reasons), Coinbase appears to have continued to back Ripple. Of last November, it filed an amicus brief in support of Ripple, indicating that it is on Ripple’s side and would like to see XRP relisted if at all possible.
If Coinbase does relist XRP, and if Ripple also receives favourable legal rulings, the cryptocurrency will likely reach all-time highs this year. Within days of such a ruling and/or relisting, XRP’s value could recover to $0.5, and in the longer term, it could recover to $1, before the altcoin advanced towards its record high of $3.40 in a new bull market.
It’s also important to note that XRP is still a robust cryptocurrency at its core. This was brought to light a few weeks ago, when Ripple released its Q4 2022 XRP Markets Report, detailing the quarter’s $226.31 million in net XRP sales.
This occurred in spite of its case with the SEC, suggesting that the resolution of that case will lead to a surge in Ripple’s business activity. As a result, the value of XRP will increase.
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