By Key Points
- Ripple’s legal battle with the SEC raises new questions despite progress.
- XRP traders remain puzzled by the token’s price stagnation.
- Ripple’s recent Form C filing might suggest the case’s conclusion.
- Despite favorable rulings, XRP remains trapped in a consolidation phase.
The XRP price remains a puzzle for traders, especially after Ripple’s recent legal successes. While many expected XRP to soar following favorable court rulings, the token’s price has remained stagnant.
Investors and traders are left wondering: What’s holding back XRP from taking off?
No surprises here — once again it’s been made clear. The Court’s ruling that “XRP is not a security” is NOT being appealed. That decision stands as the law of the land.
Stay tuned for Ripple’s Form C to be filed next week. https://t.co/m9molUGSBv
— Stuart Alderoty (@s_alderoty) October 18, 2024
Ripple Lawsuit: Is The End Within Sight?
Short term, each and every XRP price prediction becomes a speculation regarding the outcome of Ripple Labs and the SEC legal battle.
Connecting a couple of key business moves Ripple made in recent weeks, Ripple moved far deeper into the plausible conclusions. First, Ripple filed Form C which may indicate the lawsuit is about to wrap up.
This form c is too used in limited offerings for filing purposes, which probably makes sense for Ripple to reinforce its adherence to legal regulations. This might detract from the SEC’s position even more and possibly compel a resolution suitable for Ripple.
But depictions for expected or hoped higher figures are inaccurate, especially for the price of the XRP. Very recently the SEC submitted its appeal which aims at reversing several aspects of the July 2023 judgement in favour of Ripple.
Most importantly the SEC does not challenge the ruling that sales of XRP to end retail users via the exchanges were not securities transactions.
This partial defeat has fueled optimism that the case is close to the end. If the lawsuit comes to an end shortly, XRP price may finally resume its growth from the lows of 0.65 levels.
How come XRP is Price Remains Stagnant?
XRP price has managed to remain within the boundaries of $0.52 to $0.62 since the middle of 2023 after these good things have happened. Despite Ripple’s highly favorable legal standing, there are many explanations for this situation.
To begin with, there has been an apparent absence of strong buying interests in the market. The month of October saw XRP trading volume as being particularly weak.
The trend of the On-Balance-Volume indicator (OBV) and also of the Chaikin Money Flow indicator (CMF) does not seem to indicate much upward growth. Such indicators highlight that selling activities prevail, which have deterred XRP price advancement.
Second, business psychology impacts a situation significantly. As long as the litigation is still active, many investors do not feel fully ‘safe’ to use their funds and place them completely on XRP.
Ripple has indeed won some battles in the case, but it is still in a legal dispute and hence the dark cloud of regulatory risks still persists. This explains why traders tend to be cautious even when there are good opportunities, as they are waiting for more clarity before aggressively pushing their investments.
Furthermore, the existing conditions in the broader crypto trading environment have seen the majority of the larger cap altcoins attracting attention as they have better potential for short-term gains.
XRP has been forgettable for many traders as there are quicker returns from other available assets, hence justifying XRP’s lost status and plateau price.
What do the Charts Say about the Future of XRP Prices?
As we move forward, it seems that the XRP price may increase drastically, especially if there is a resolution to Ripple’s courtroom tussles.
The XRP Token has been relatively low in regulation, owing to the ongoing SEC case, especially since if it is settled or dropped entirely, it’d be a big load off the token.
This could make room for broader investment that had not come forward due to the case.
At this moment, the XRP price is in a choppy market, waiting for a trigger for an upward price action. From this perspective, the ongoing litigation will be the most pertinent factor in the price movement within the shortest term.
Investors can ignore the price fluctuations for the time being and can place their energy and attention towards the progression of the suit; a final say on it could very well lead to a rise in price.
Until that time however, since the market and the regulation pose a lot of pressure on the XRP price, it will not be jumping up anytime soon.
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