XRP Price Surge: Legal Wins and Beyond

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By A D

The crypto market has experienced a bullish run throughout November, with XRP taking the spotlight. Starting the week at a strong 70-cent price, XRP’s price has surged by nearly 8.5%, signaling growing interest. This upward movement is part of a broader trend that began in October, driven by positive developments and increasing investor attention. Since October 19, XRP has gained almost 45%.

XRP’s derivative market has also seen promising growth, with open interest (OI) rising by nearly 13.5% in the past 24 hours, reaching $751.75 million. While it’s lower than the OI following the SEC vs. Ripple court decision in July, it reflects increased activity and interest in XRP’s derivatives.

From a technical perspective, XRP’s price movement is currently above both the 50-day and 200-day Exponential Moving Averages (EMAs), indicating a bullish trend. The Relative Strength Index (RSI), comfortably above 50, supports this bullish sentiment.

XRP Price Chart
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On-chain data shows consistent accumulation of XRP by wallets holding between 100,000 and 1 billion XRP tokens, reaching the highest level in 2023.

XRP Price Outlook

After reaching a recent high, XRP briefly dipped by over 5%, a phenomenon often associated with “selling the news” after significant events. However, the overall trend suggests a potential for future price increases.

XRP’s price is set for potential further upward movement, targeting $0.90 by 2024. However, it’s important to note that an RSI above 70 could trigger a correction, with a downside target around $0.55.

XRP’s price movement within a parabolic curve suggests the prospect of achieving a new yearly high. Despite a bearish turn in the RSI, selling volume has not yet overpowered buying pressure, indicating potential for a rebound after touching interim support levels.

The expected rebound could lead XRP to surpass former support-turned-resistance levels and potentially reach and exceed $0.82 by the end of the month. This could pave the way for XRP to surpass the crucial resistance at $0.912 and potentially reach $1 in the early days of 2024.

What is The Reason of The Surge?

One significant catalyst for XRP’s price surge is Ripple’s recent regulatory approval in Georgia and Dubai. The Dubai Financial Services Authority (DFSA) approved XRP under its virtual assets regime, allowing licensed firms in the Dubai International Financial Centre to offer XRP as part of their crypto services.

Read: Ripple Joins Forces with Global CBDC Symposius

This regulatory approval provides a green light for financial institutions in the region to transact in XRP tokens. Additionally, Ripple announced its collaboration with the National Bank of Georgia (NBG) on the Digital Lari (GEL) pilot project, utilizing Ripple’s central bank digital currency (CBDC) platform. These developments have boosted confidence in XRP and its utility in cross-border payments.

The Broader Crypto Market Trend

XRP’s resurgence, along with other leading cryptocurrencies, has led to significant gains in the crypto market. Bitcoin has experienced a 0.91% increase and is currently trading at $35,171. There are expectations that it could breach the $35,612 resistance level. BTC dominance has decreased slightly to 51.45%, showing a 0.34% decrease over the day.

Bitcoin price chart
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Ethereum has outperformed other cryptocurrencies with a 1.73% rise, trading at $1,909. Analysts anticipate that ETH could surpass the $2,000 mark by mid-November.

The global crypto market cap stands at $1.33 trillion, representing a 0.95% increase over the last day. The total crypto market volume over the last 24 hours is $40.99 billion, showing a 7.00% increase. The volume in DeFi (Decentralized Finance) is currently $4.91 billion, accounting for 11.97% of the total crypto market 24-hour volume. The volume in DeFi (Decentralized Finance) is currently $4.91 billion, accounting for 11.97% of the total crypto market 24-hour volume.

Ripple: A Brief Background, The Success of XRP and The SEC Lawsuit

What is Ripple?

XRP and Ripple are often used interchangeably, but they are not entirely the same. Ripple Labs, initially named OpenCoin, introduced Ripple in 2013. Ripple designed a financial service to offer secure payment options within a global online community. Users acted as banks, extending credit within their social networks, making it a decentralized financial platform, distinct from Bitcoin’s centralized model.

However, Ripple Labs also created a digital currency to complement Ripple, known as XRP. The primary difference is that Ripple Labs is a private company, while XRP is an independent cryptocurrency open to anyone. Ripple provides a platform for efficient cross-border transactions, using XRP as a currency when needed.

Ripple Labs conference
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The Growth Of XRP

In early 2020, Ripple was making strides in its mission to simplify international money transfers. A notable partnership with Azimo led to the transfer of $24 million between the US and Mexico in just one week, resulting in substantial savings on transfer costs.

XRP, as a cryptocurrency, had a rollercoaster ride. Despite significant fluctuations, it reached its all-time high of $3.84 in January 2018, a remarkable surge from its initial value of $0.002, indicating a promising future for both Ripple and XRP.

The SEC’s Legal Challenge

In December 2020, the SEC filed a lawsuit against Ripple, its co-founder Christian Larsen, and CEO Bradley Garlinghouse, alleging that they had offered unregistered securities worth $1.3 billion. The SEC claimed that Ripple had raised funds for its operations by exchanging XRP for non-cash considerations, such as labor and market-making services. Investors lacked the information they were entitled to regarding these transactions.

The central question revolved around whether XRP qualified as a security or a cryptocurrency. Unlike Bitcoin and Ethereum, which the SEC had previously classified as cryptocurrencies, XRP had distinct characteristics. It didn’t rely on mining, and Ripple had already created and circulated its entire supply of 100 billion units, with Ripple controlling a significant portion of it.

Ripple Labs argued that XRP was indeed a cryptocurrency, while the SEC’s complex language failed to provide a clear definition. The uncertain regulatory landscape added to the confusion surrounding cryptocurrencies.

In response to the SEC’s actions, Ripple Labs maintained that the lawsuit was an attempt to target all cryptocurrencies, emphasizing that the battle was far from over. The legal dispute sparked a broader discussion on how to regulate cryptocurrencies, with experts expressing varying opinions.

Read: Ripple: Lawsuit, Trading Strategies, and Price Outlook

What is The Current Scenario in The Ripple vs SEC Lawsuit?

Gary Gensler
Gary Gensler, SEC Chair, has been very vocal about his views on SEC’s counterarguments for XRP. Image Source

The U.S. Securities and Exchange Commission (SEC) has decided to drop its claims against Ripple, its CEO Brad Garlinghouse, and co-founder Chris Larsen. While this case has witnessed numerous twists and turns, it took a new direction with a judge’s ruling in July, which clarified that XRP transactions on public crypto exchanges do not constitute the sale of securities.

The SEC’s decision to drop its claims against Ripple marks a capitulation by the regulatory agency. This action indicates that the SEC may have recognized the weakness of its case. It’s a significant win for Ripple, its CEO, and co-founder, who had been embroiled in this legal battle.

The two parties are expected to provide a joint briefing schedule by November 9, addressing the institutional sales of XRP. Ripple is likely to settle its lawsuit with the SEC for $20 million or less, which would be considered a victory against the regulator. This contrasts with the SEC’s initial demand for a $770 million settlement. Deaton argues that such a settlement would represent a 90-10 win in Ripple’s favor.

What’s The Outcome?

While Ripple has achieved a crucial legal victory, there are still discussions to be had regarding a potential settlement with the SEC. Before the lawsuit’s conclusion, Ripple CEO Brad Garlinghouse had expressed a willingness to settle under specific criteria. With XRP’s non-security status confirmed, the primary condition for Ripple’s settlement would be a fair value for the settlement. The negotiation phase is crucial for Ripple, as they now have the upper hand due to the legal clarity on XRP’s classification.

One of the most immediate outcomes of the SEC’s decision is the legal clarity it provides. The court’s ruling in July, followed by the SEC’s capitulation, establishes that XRP is not a security. This clarity is crucial for Ripple, as it means that the SEC no longer has jurisdiction over the company or the digital asset XRP. This development is a significant victory for Ripple as it solidifies the legal status of XRP as a non-security.

Despite this legal victory, Ripple has taken steps to ensure regulatory compliance in various international jurisdictions. The company has set up offices and initiated regulatory processes in countries like Ireland, the UK, Singapore, Dubai, Brazil, Japan, and Australia. This diversified regulatory approach allows Ripple to continue its global operations while navigating the regulatory landscape of various regions.

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