As Ripple Labs’ legal battle with the Securities and Exchange Commission (SEC) nears its conclusion, the fate of Ripple hangs in the balance.
But that’s not all. Amidst the wild market swings, XRP has plummeted by almost 4.5% in the past week alone, trading at $0.3788 as of March 2. Even as altcoins surge with bullish fervor, XRP’s price has stagnated since the year began.
As the uncertainty deepens, investors are left pondering the crucial question: will XRP witness a dramatic spike this year? Let’s find out.
The current state of Ripple
The ongoing legal battle between Ripple and the SEC continues to heat up, with both parties submitting their final statements and awaiting summary judgment.
However, the focus remains on the SEC’s power in regulating the cryptocurrency industry and the unsealing of crucial documents.
A few days back, SEC chair Gary Gensler mentioned that all cryptocurrencies except for bitcoin (BTC) are securities. Ripple is being sued by the SEC for selling XRP as unregistered securities.
Pro-XRP lawyer John Deaton recently challenged Gensler’s statement stating that there is no consensus on the classification of securities, in response to a comment made by MicroStrategy’s Michael Saylor, who noted that Gensler’s remarks show a growing consensus on the issue.
Deaton has proposed a possible settlement in which Ripple would pay $100-250 million if the SEC agrees that ongoing and future sales of XRP are not classified as securities.
However, the likelihood of the SEC agreeing to this approach is minimal due to its recent crackdown on the digital asset space.
Meanwhile, unsealing the Hinman speech documents has become a significant part of the case. The speech, given by the former Director of the SEC’s Division of Corporation Finance, could clearly represent how the SEC classifies securities.
In addition to the Ripple-SEC case, Ripple is also facing a class-action lawsuit filed by XRP investors who allege that the company and its CEO sold XRP as an unregistered security.
Deaton has filed a motion to join the matter as an amicus brief, but the plaintiffs have opposed his inclusion in the case.
The outcome of these legal battles could have significant implications for the cryptocurrency industry, particularly regarding the classification of securities and the power of regulators to oversee the industry.
Ripple strengthening ties with other countries
Ripple is reportedly in talks with more than 20 central banks worldwide about the development of their own central bank digital currency (CBDC).
The revelation was made by Brooks Entwistle, the senior vice president of customer success and managing director of APAC and MENA at Ripple, in a recent interview.
While China and the United States have been focusing on developing their CBDC through the public sector, smaller countries are opting for Ripple’s services to create a custom CBDC that caters to their unique requirements.
Entwistle emphasized that every central bank and country has different needs and situations and that Ripple is in discussions with a diverse range of central banks worldwide.
The executive further stated that collaborating directly with governments and regulators is “invaluable,” and that discussions about crypto and blockchain have generally been welcomed in most parts of the world.
Ripple has already announced partnerships with Bhutan and Palau, with more in the pipeline, which according to Entwistle, demonstrates Ripple’s prime position to help governments develop their own CBDCs, ensuring that they are tailored to their specific needs.
XRP price prediction
According to a Twitter crypto analyst, XRP could soar to a whopping $27! But there’s a catch — XRP must finish the second part of the W formation and close the monthly candle above $2.2. If that happens, XRP would spike more than 7,000% from its current price levels.
Unfortunately, the analyst didn’t give a timeline, so we must keep our eyes peeled for more details.
Meanwhile, DigitalCoinPrice has also weighed in with their predictions, stating that XRP will have an average price of $0.74 in 2023 and $0.94 in 2024. Gov. Capital is even more optimistic, estimating that XRP could hit $1.89 by the end of 2025!
Of course, the cryptocurrency market is incredibly volatile, and predictions can often miss the mark. Experts and algorithm-based forecasters alike have been known to miss the mark when it comes to predicting price movements.
So while these predictions are certainly exciting, it’s important to exercise caution before diving into any investments.
At the end of the day, there’s no telling whether XRP will actually hit these predicted prices. So if you’re thinking about investing in XRP, make sure you do your research and approach with caution.