In December 2022, the cryptocurrency landscape was jolted by the news of the U.S. Securities and Exchange Commission (SEC) filing a lawsuit against Ripple Labs, the company behind XRP, one of the leading digital currencies. This legal battle has been a significant cloud over Ripple's prospects, influencing investor sentiment and casting a shadow on XRP's price performance. The core of the lawsuit revolved around the SEC's allegations that Ripple had conducted an unregistered securities offering by selling XRP to the public. This classification of XRP as a potential security brought about stringent scrutiny and uncertainty, leading to a cautious approach from investors and a notable impact on its market position.
The ongoing lawsuit has undeniably hindered XRP's price, limiting its growth potential amid a period of burgeoning interest in cryptocurrencies. Financial markets, inherently averse to uncertainty, saw XRP's legal entanglements as a major red flag, leading to a dip in investor confidence and a consequent stagnation in price growth. The legal battle not only affected Ripple's ability to forge new partnerships and expand its network but also led to XRP being delisted from several major cryptocurrency exchanges, further exacerbating the liquidity and trading volume issues.
However, a recent turning point in this saga has emerged, potentially altering the course of XRP's journey. A ruling that XRP is not a security could mark the beginning of the end for the lawsuit, setting a significant precedent for the cryptocurrency industry at large. This landmark decision is expected to dismantle the veil of uncertainty that has loomed over XRP, opening the doors for reinstatement on cryptocurrency exchanges and possibly reigniting interest among institutional and retail investors alike.
As we look ahead, the potential conclusion of the lawsuit against Ripple Labs presents an optimistic outlook for XRP's price in the medium term. The clearing of legal hurdles may act as a catalyst for a resurgence in XRP's value, as it could lead to renewed confidence, increased liquidity, and broader adoption across financial ecosystems. In the coming weeks, the market will keenly watch Ripple's moves as it seeks to leverage this positive momentum, potentially heralding a new era of growth for XRP. The cryptocurrency market is known for its rapid shifts in sentiment and volatility, and Ripple's recent victory could very well serve as a beacon for investors searching for signs of stability and legitimacy within the digital asset space.
What Is XRP?
XRP is a digital asset that is native to the XRP Ledger, an open-source, decentralized blockchain technology that facilitates fast, energy-efficient transactions. Unlike many other cryptocurrencies, XRP transactions are processed in seconds and at a fraction of the cost, making it an attractive platform for cross-border payments and remittances. The XRP Ledger operates without the need for mining, which distinguishes it from Bitcoin and many other cryptocurrencies; instead, it relies on a consensus protocol to validate account balances and transactions, ensuring integrity and security without the significant energy consumption associated with proof-of-work systems.
Ripple Labs, a San Francisco-based technology company, developed the XRP Ledger and created XRP. While Ripple Labs remains a key player in the ecosystem, providing development and promoting the adoption of the XRP Ledger, it's important to note that the ledger operates independently of any single entity. This distinction is crucial in understanding XRP's role and functionality within the broader digital currency landscape.
XRP serves several purposes within the Ripple ecosystem. Primarily, it acts as a bridge currency, enabling the exchange between different currencies within the network. This function addresses a common problem in international finance known as the "double-spending problem," making it easier and more efficient for financial institutions to process cross-border transactions. Additionally, XRP can be used to settle transactions on the XRP Ledger, providing liquidity to financial markets and facilitating quicker and cheaper transactions than traditional banking systems.
Over the years, XRP has grown to become one of the leading cryptocurrencies by market capitalization, reflecting its widespread adoption and the belief in its potential to transform the financial industry. Its design and functionality make it a pivotal component of Ripple's vision for the Internet of Value, where money can move as freely as information does today. Despite facing regulatory challenges and market volatility, XRP continues to play a significant role in the evolving landscape of digital finance, with its underlying technology offering a glimpse into the future of global payments.
XRP Price
XRP is currently trading for around $0.638, and has a market cap of just over $35 billion. This makes it the sixth largest cryptocurrency by capitalization. The remittance token also has a circulating supply of $54,884,241,878 XRP.
XRP Price Prediction for 2024
XRP has consistently printed higher highs and higher lows on its weekly chart throughout the last couple of months. Should this positive momentum continue, the crypto could overcome the resistance level at $0.6462 in the coming fortnight. This could then clear a path for it to rise to $0.7442 in the following couple of months before potentially reaching $0.8455 at the end of this year.
However, as long as the case between Ripple and the SEC is ongoing, investors should brace for possible sharp corrections in XRP’s price due to negative developments in the case. In a bearish scenario, the XRP price could drop to the immediate weekly support level at $0.5464. Thereafter, continued sell pressure at this point may pull the altcoin’s value down to $0.4497. In an extremely bearish scenario, the XRP price may plummet to $0.3985 in the coming months.
XRP Price Prediction 2025
Although it is nearly impossible to determine how the XRP price will perform in 2025, there is the potential bull run that is believed to be coming sometime towards the end of 2024 and the beginning of 2025. Crypto prices have surged recently, but many believe that this is not the true bull run. Several traders and investors are of the opinion that the current crypto market pump has to do with the hype surrounding Bitcoin ETF approvals and a pre-halving rally. Following the Bitcoin halving event estimated to take place in April 2024, euphoria in the crypto market may dwindle down.
Nevertheless, if the bull market takes place between the end of 2024 and the beginning of 2025, then XRP investors have a lot to look forward to. In this bullish scenario, XRP could start the new year off with a peak at $0.85, before potentially retracing prior to another strong leg up. If this buying pressure continues, the crypto could then finally break the $1 mark. This could subsequently clear a path for it to rise to between $1.30 and $1.50 in 2025.
However, a bearish scenario could result in XRP correcting to the $0.85 mark. Continued sell pressure may then pull the remittance token’s value down to between $0.7442 and $0.6462.
Is XRP a Good Investment?
With the potential for the longstanding XRP vs SEC lawsuit to come to an end in the coming weeks and the relisting of the crypto on top-tier exchanges, XRP could print substantial returns for investors. However, keep in mind that investing in any cryptocurrency carries a high degree of risk, so make sure to do your own research before putting your money into XRP.
Bottom Line
Are you ready to invest in XRP? Very few if any analysts forecast its value going down to zero, although you can’t be sure these days, so make sure you always do your own research before making investment decisions. And keep in mind that cryptocurrency prices can be extremely volatile, so trading crypto always involves a high degree of risk.
Disclaimer: Coinpaper does not recommend that any cryptocurrency should be bought, sold, or held by you. Always conduct your own research and consult your financial advisor before investing in any digital asset.
Frequently Asked Questions
What is XRP and who created it?
XRP is a digital asset that functions within the XRP Ledger, an open-source, decentralized blockchain technology designed for fast and energy-efficient transactions. It was developed by Ripple Labs, a San Francisco-based technology company. XRP distinguishes itself from other cryptocurrencies by enabling transactions in seconds at a fraction of the cost, without the need for mining. It serves as a bridge currency within the Ripple network, facilitating the exchange between different currencies and providing liquidity for financial markets.
Why did the SEC file a lawsuit against Ripple Labs?
The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs because it alleged that Ripple conducted an unregistered securities offering by selling XRP to the public. The core issue revolves around the classification of XRP as a potential security, which led to stringent scrutiny and uncertainty surrounding its legal status and impact on its market position.
How has the lawsuit affected XRP's price and market position?
The ongoing lawsuit has significantly impacted XRP's price and market position, causing a stagnation in price growth due to a dip in investor confidence. It affected Ripple's ability to form new partnerships and expand its network. Furthermore, XRP was delisted from several major cryptocurrency exchanges, exacerbating liquidity and trading volume issues. However, a recent turning point suggests that if XRP is ruled not to be a security, it could potentially reverse these adverse effects.
What is the future outlook for XRP following the lawsuit?
The potential conclusion of the lawsuit presents an optimistic outlook for XRP's price in the medium term. If legal hurdles are cleared, it may act as a catalyst for XRP's value resurgence due to renewed confidence, increased liquidity, and broader adoption across financial ecosystems. The market is keenly watching Ripple's moves as it seeks to leverage positive momentum, potentially heralding a new era of growth for XRP.
