Despite being one of the largest altcoins, Ripple’s legal struggle with the SEC persists into 2024 and shows no signs of concluding soon. Even after years, investors who bought at the all-time high have seen no returns. Will its performance remain the same going forward?
Ripple (XRP) Analysis
Ripple made an ambitious entry during a time when cryptocurrency was not widely supported by institutional firms and many ventures had not yet become institutionalized. Later, as Ripple aimed to serve central banks, it attracted more investors and was on the verge of going public when the SEC stepped in.
For years, US taxpayers’ money has been spent by the SEC trying to prove that XRP Coin is a security. SEC lawyers have been unable to achieve the desired outcome despite lengthy explanations on why the modified Howey test should apply. The classification and definition of individual investors’ transactions on exchanges were crucial, and the Judge declared that these do not constitute securities or investment contracts.
Nevertheless, following a temporary surge, the XRP Coin price continues to linger around the $0.5 mark. This stagnation is due to fading rumors about an XRP ETF, the possibility of overturning the summary judgment in the upcoming collective appeal process, and the continuously increasing circulating supply.
When considering all these factors, the medium-term outlook for XRP Coin is pessimistic for most. However, a few experts believe this gloomy picture should be seen as an opportunity to buy XRP Coin and are confident that the pressure from FUD will end.
The issue is that the rapid entry of the 100 billion maximum supply into circulation is a concern beyond FUD. If XRP Coin reaches $3, its market cap will be $300 billion (based on a circulating supply of $150 billion), and it must reach a market cap close to $1 trillion if it hits the exaggerated double-digit prices. Even today, BTC has only just surpassed this critical region.
XRP Coin Price Predictions
Since the week of January 8th, the XRP Coin price has been attempting to close above the $0.58 resistance level. However, the attempts in the last two weeks have failed. For a bullish scenario to materialize, the price must surpass this region. If successful, we could see the well-known targets of $0.63 and $0.74 being tested.
As of the writing of this article, XRP Coin is trading at $0.536. Without BTC reclaiming the $52,000 mark, we might see the $0.5 support level being tested over the weekend with reduced volumes.
