Will Ripple vs SEC lawsuit Propel It to $1 or Push Below $0.50?

According to Bitget’s chief analyst, Ryan Lee, XRP’s price is likely to fluctuate between $0.50 and $0.80 for the rest of 2024. This range hinges on regulatory developments and the ongoing legal battle between Ripple and the U.S. SEC. Investors are adopting a cautious approach as the market remains in the wait-and-watch mode for better results.

What do you think will be the melting point for XRP will it pump in the current scenario? Let’s see what the analyst has unfolded.  

The Ripple-SEC Appeal Adds Pressure

The U.S. regulator’s recent appeal in its case against Ripple is causing further market hesitation. While the appeal doesn’t challenge the ruling that XRP is not a security, it seeks a review of Ripple’s XRP sales on exchanges and personal sales by Ripple CEO Brad Garlinghouse and co-founder Chris Larsen. This introduces more legal ambiguity, especially for U.S.-based participants, and is likely to increase XRP’s volatility.

The uncertainty could cause the asset to move within a wide 50% range as the market weighs potential legal outcomes.

Legal Proceedings Could Extend Until 2025

Ripple’s chief legal officer, Stuart Alderoty, mentioned that the legal briefing process is expected to last until July 2025, meaning that regulatory pressure will continue to play a significant role in XRP’s performance for the foreseeable future. Lee highlighted the importance of the final ruling, which could shape XRP’s price direction based on the court’s decision.

XRP Exchange-Traded Fund on the Horizon?

Adding to the uncertainty, Tim McCourt, senior managing director at CME Group, stated on October 16 that progress has been made toward creating an XRP ETF. The foundation is being laid with a reference rate and real-time index in place, although a fully-fledged ETF is still in the works.

Until the legal dust settles, XRP’s price will likely remain highly volatile, investors need to act with patience. 

Impact on XRP Price

Lee’s projection suggests that XRP’s price is heavily influenced by U.S. regulatory developments, with a favorable ruling for Ripple likely boosting its value, while a negative outcome could push it lower. XRP last surpassed $0.80 in March 2022, and its highest 2023 price was $0.71. Currently trading at $0.55, XRP has seen a slight increase of 0.42% since October 18. 

Meanwhile, Ripple’s RLUSD stablecoin launch could drive XRP to $1 or even $2, but this depends on XRP’s involvement in the stablecoin ecosystem and breaking key resistance levels. On the flip side, minimal involvement of XRP in RLUSD could lead to a price drop below $0.50.