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XRP Price has lost all its gains after the Ripple court ruling in July with the SEC filing for interlocutory appeal.
XRP’s price trajectory is expected to remain subdued until the case concludes. But this could be a good accumulation time for long-term investors.
Ripple’s native cryptocurrency XRP entered a severe correction during the broader crypto market crash last week. As a result, the XRP price came down all the way to $0.47 losing all of its gains made post the Ripple court ruling. From its 2023-high the XRP price is already down by more than 50%.
Recently, the XRP price bounced back above $0.50 with on-chain data suggesting bottom fishing for whales. Is it good to accumulate XRP as long as the price sustains below $0.60 levels? Well, for the long-term investors this could be an opportunity here.
However, a lot shall depend on the clarity surrounding the Ripple vs. SEC case. So far, the regulatory developments surrounding XRP have been better and optimistic for Ripple. Recently, the SEC has contested the court ruling by filing an interlocutory motion. The decision for the same would be coming by the first week of September.
July’s XRP price rally was driven by a legal decision in the lawsuit filed by the SEC in December 2020. After careful consideration of the evidence, U.S. District Court Judge Analisa Torres issued a final ruling, which was seen as a partial victory for Ripple Labs, the entity behind the Ripple blockchain network and XRP token.
Importantly, the ruling was favorable enough towards Ripple that American crypto exchanges resumed trading of the token. The SEC’s contention was that Ripple should be classified as a security rather than a currency, thus subjecting it to the agency’s oversight and similar regulatory conditions as stocks or bonds.
Why Didn’t the XRP Price Rally Last Long?
The XRP cryptocurrency experienced a brief surge, followed by a subsequent downward trajectory. Many investors were anticipating a more definitive resolution.
Moreover, the ruling emphasized that the legal process wasn’t finalized. All three decisions remain open to appeals, and it wouldn’t be surprising to witness the judicial process potentially reaching the Supreme Court in the upcoming years.
In fact, the SEC has already initiated an appeal, citing the immense significance of the case for the crypto investment sector and thereby warranting comprehensive legal examination. The agency argues that the case hasn’t reached its conclusion in its present state. This appeal contributed to the decline in the XRP token’s price.
The SEC lawsuit remains unresolved, and its complete resolution doesn’t seem imminent. The ultimate outcome of this case, once all appeals are exhausted, is likely to significantly shape the government’s long-term approach to crypto regulations.
Judge Torres’ examination seems to suggest classifying the crypto realm into two categories: coins resembling securities, which should appreciate similarly to stocks, and coins functioning as trade tools with currency-like attributes. Currently, Ripple aligns with the latter category, fueling a digital payment network.
XRP’s price trajectory is expected to remain subdued until the case concludes definitively. Positively, American crypto exchanges have resumed XRP trading without legal controversies. This development alone should allow the token to better reflect Ripple’s actual business prospects over time.
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