For years now, XRP prices suffered from multiple downturns. From an SEC lawsuit to a crashing crypto market, XRP prices never managed to reach their previous all-time high valuations. Additionally, many other crypto projects entered the crypto realm and competed quite well with Ripple. With the current crash coming to a halt, XRP prices reached a strong support price. Will XRP go up again? What should we expect from XRP prices?
What is XRP token?
The XRP ledger’s digital asset, XRP, offers financial service providers on-demand liquidity. It also serves as a bridge currency, allowing cross-border transactions to be made more easily. Transaction costs for XRP are 0.00001 XRP or 10 drops, which is less than a penny per transaction at today’s pricing. Payment companies may use XRP to reach smaller markets, receive faster payment settlements, and save money on foreign exchange. Ripple is a member of the XRP ledger, which is open-source and managed by a worldwide and independent community.
XRP Price DOWN in the last few months
XRP has stayed in the top 10 cryptocurrencies by market cap for the past few months. XRP has been one of the cryptocurrencies with the highest market capitalization for years. However, during the last bull market, the XRP price could not rise as much as other cryptocurrencies. This was due to the legal battle with the SEC, which we will examine shortly.
While most cryptocurrencies hit their all-time highs in 2021, XRP did not. We saw two spikes in September and November. After the latter, the market collapsed continuously, which also caused the XRP price to fall continuously.
XRP saw its heaviest losses until the end of January when it previously fell from $1.28 to $0.62. In the following 3 months, we saw a slight recovery. However, starting in May, there was a massive crash. The XRP price fell to $0.32. XRP has lost 75% of its value since November. These losses are similar to the losses of other cryptocurrencies over this period.
What’s the deal with the SEC?
Since 2020, the company Ripple Labs, which is behind the Ripple payment network and the cryptocurrency XRP, has been in a lengthy legal battle with the American Securities and Exchange Commission (SEC).
The indictment against Ripple was filed on December 22nd, 2020. The CEO Brad Garlinghouse and co-founder Christian Larsen are accused of trading securities without a license. The lawsuit also includes an allegation of market manipulation by own holding large amounts of XRP.
The SEC’s problem is that it sees XRP as a security and not as a cryptocurrency. Significantly stricter trading rules apply to securities. The SEC is said to have warned Ripple about the classification and the consequences as early as 2012.
The SEC litigation has been one of the hottest topics in the crypto market over the past 2 years. It was probably the event that determined the course of a cryptocurrency more than any other isolated topic. The XRP course suffered extremely from the legal dispute.
Will Ripple BOOM after the lawsuit is resolved?
The course of Ripple (XRP) has suffered greatly from the legal dispute with the SEC in the last 1-2 years. But if the lawsuit ends, Ripple could actually explode. Above all, a positive outcome with the dropping of all charges could mean a massive increase in the XRP price in the coming weeks and months.
In 2022, positive news about Ripple’s legal battle piled up. Most recently, any conflicts of interest within the SEC were disclosed. The stock exchange supervisory authority has allegedly made many mistakes in the past and did not sufficiently inform those responsible at Ripple. A solution is likely to be forthcoming in 2022.
Will XRP go up?
Ripple is very likely to rise if the SEC dispute is resolved. But will Ripple (XRP) really explode in price? Many investors could soon be asking themselves this question.
The forces of the bear market seem to be so strong that a Ripple (XRP) price explosion in the coming weeks and months seems unlikely. Only if we see a true market reversal across all cryptocurrencies could Ripple (XRP) actually explode.
At the moment it seems that the XRP course could stay in the top 10 cryptocurrencies. However, if the legal dispute ends positively, XRP could rise again in the ranks. In 2017, the XRP was still the number 2 cryptocurrency in terms of market capitalization ahead of Ethereum.
Is XRP a Good Buy now?
The XRP is currently at a very low price level after the massive losses on the market. This level could hold for a few more months due to the bear market. However, it is also possible that the XRP price may rise again as a result of the end of the legal dispute with the SEC or due to an improvement in the overall market situation.
Can Ripple (XRP) explode in the next few weeks and months? A large explosion in price is unlikely. However, an increase in the price is even more likely due to the circumstances mentioned. Accordingly, it should be worth buying XRP in the current market if you are planning a long-term investment.