The continuing battle between the Securities and Exchange Commission (SEC) and the fintech company Ripple continues to generate news. A lawsuit filed at the end of 2020 might very well determine the future of cryptocurrencies and blockchain technology.
In December 2020, the SEC filed legal action against Ripple Labs and two of its executives.
According to the lawsuit, they transacted $1.3 billion in their cryptocurrency XRP as security without registering it with the SEC. Since then, Ripple and others have replied by claiming that the SEC is prejudiced in its judgement.
Ripple’s comeback?
Despite other cryptocurrencies achieving new highs in the last year, Ripple has mostly stayed on the sidelines. Fortunately, XRP is reviving as the long-running legal battle with the SEC seems to be coming to a finish, and in Ripple’s favour. This has caused Ripple’s price to rise in anticipation of a return in 2022. XRP was trading at US$0.6822 at the time of writing, with a market value of US$3.940 billion.
In February, Ripple’s native currency, XRP, soared as market expectations grew that the XRP versus SEC court case would result in a favourable outcome for the decentralised ecosystem. Some analysts see Ripple’s case going down this year, and with this, its price may change in the coming two or three years. Experts at Cryptona came up with the Ripple Price Prediction through extensive research and investigative efforts to see how the coin will turn out in the next couple of years.
Cryptocurrency investors are piling into Ripple as the situation becomes more certain and heated. Ripple Labs, the firm behind the XRP token, on the other hand, has purchased back part of its stock as it prepares for a possible public stock market listing after the court dispute is resolved.
Ripple’s price has lately been trending upwards from a technical standpoint. To get to US$1, the cryptocurrency has found some solid support at the 50-day EMA (Exponential Moving Average) at US$0.74. These trends suggest that Ripple will see a significant price increase in the next few months.
Although XRP will not be able to surpass top digital currencies such as Bitcoin and Ethereum in the near term, it has the potential to do so over time. XRP has just seen its second-largest accumulation period, according to on-chain data given by Santiment analytics feed. Over 900 million coins have been taken by addresses that own 10 million XRP.
XRP’s price throughout the years
XRP has attracted a lot of interest and seen consistent price increases since its debut, only for the SEC to dismiss a legal lawsuit against it. However, in order to fully comprehend Ripple’s position, we must examine its price movements over time.
Since its inception in 2013, XRP has remained on the outside of popular use until 2017. Ripple’s price has increased by 35,000 per cent in less than a year. While the cryptocurrency was achieving new milestones, RippleNet’s parent business reached a milestone of 100 banks globally signing on.
Following a record high in early 2018, Ripple was unable to withstand the broader cryptocurrency market slump and fell by 43%. Ripple’s pricing remained very constant during 2019. XRP, on the other hand, did not achieve a new high in 2020, when other cryptocurrencies were experiencing a positive trend. Rather, it peaked in the middle of 2021 and then levelled out around August of that year.
How will the case affect XRP?
Throughout the years, Bitcoin has seen significant price drops since the lawsuit was filed. As a result, investors may now perceive a glimmer of hope.
Ripple has won a slew of emotions this month, all of which are viewed as crucial to Ripple Lab’s defence. The court found in XRP’s favour, allowing the firm to release two important papers that had been sealed. They are likely to expose how XRP was categorised by the SEC in 2012. Former SEC employees were allegedly prejudiced against Ripple Lab and XRP in favour of Ethereum.
The SEC argued that XRP is security since it was used to fund Ripple’s platform, which allows money transactions for merchants in their legal case. The platform’s management was also wealthy as a result of the XRP sales.
Securities must be registered with the SEC, and some financial information must be publicly reported, according to SEC requirements. The purpose is to protect investors’ interests while combating fraud.
XRP in 2022
The price of Ripple is now entirely dependent on the XRP versus SEC court battle. If everything goes in Ripple’s favour, it will be a win not only for the business but for the whole cryptocurrency industry. It will be the first time that a decentralised media has triumphed against a government wing. As a result, XRP’s price is projected to hit new highs after that.
According to researchers, 21 indicators are now exhibiting bullish signs, and ten are showing negative signals. Another price research predicts a favourable trend in the near term, with the currency reaching US$1.28 in 2023.
Credit: Source link
