The price of XRP, the native token of Ripple, is showing signs of life after a prolonged period of correction. With a current price hovering around $0.45, investors are cautiously optimistic about a potential surge towards $10, fueled by two key factors: the ongoing Ripple vs. SEC lawsuit and the possibility of a spot XRP ETF.
The lawsuit, filed by the SEC in December 2020, accuses Ripple of selling unregistered securities in the form of XRP. The case has dragged on for years, creating uncertainty for the token’s future. However, recent developments offer a glimmer of hope for Ripple. The SEC has significantly reduced its initial penalty proposal, and the case has finally reached the crucial trial stage.
Adding to the positive sentiment, Ripple CEO Brad Garlinghouse remains confident about the prospects of a spot XRP ETF. A successful lawsuit resolution, coupled with an ETF approval, would be a major win for Ripple and could significantly boost XRP’s legitimacy and value. Pro-Ripple legal experts believe the lawsuit outcome could expose the SEC’s overreach in regulating cryptocurrencies, potentially paving the way for a more favorable regulatory environment for XRP.
However, challenges remain. The lawsuit’s final verdict is unknown, and the path to an XRP ETF approval is not guaranteed. Additionally, broader market sentiment plays a crucial role. The recent sell-off in major cryptocurrencies like Bitcoin and Ethereum has cast a shadow over the entire market, and XRP is not immune to these external pressures.
Despite the uncertainties, technical indicators suggest a potential uptrend for XRP. The token is finding support around $0.45, and a break above the $0.5 resistance level could signal further momentum. Investors are watching the Relative Strength Index (RSI) for confirmation, hoping for a breakout from the oversold territory.
While reaching $10 might seem ambitious in the short term, a positive resolution to the lawsuit and the launch of an XRP ETF could be significant catalysts for long-term growth. As the legal battle unfolds and regulatory clarity emerges, XRP’s future will become clearer.