TL;DR
XRP’s Legal Struggles: Ripple’s XRP faced price suppression due to a lawsuit from the SEC. Many exchanges delisted XRP because of this legal battle.
Positive Legal Outcomes: Recently, a judge ruled partially in Ripple’s favor, and the SEC dropped charges against key Ripple executives.
Price Speculation: While a win against the SEC may boost XRP’s price, future regulatory challenges could affect its trajectory.
Ripple’s XRP has long been one of the most heavily-discussed cryptocurrencies in the entire market. It has managed to retain a firm position within the top 10 (by means of total market capitalization) throughout many years despite battling some serious legal challenges.
XRP Price Compressed Since Late 2020
Bitcoin’s price, alongside that of almost all major altcoins, surged in 2021. That year saw the industry’s largest-ever bull market, where the total capitalization reached a whopping $3 trillion.
While Ripple’s XRP also increased, it couldn’t even tap its previous all-time high – something that a lot of other altcoins did easily.
Many experts are speculating on the reasons, and one keeps popping up – the legal case between Ripple and the United States Securities and Exchange Commission (SEC). The financial watchdog filed a lawsuit back in late 2020, alleging that Ripple Labs launched an unregistered securities offering when selling its XRP tokens, essentially claiming that XRP itself is a security.
This had an immediate impact on the price, which was more than expected, given that almost all major cryptocurrency exchanges delisted it under fear of regulatory scrutiny.
The Case Isn’t Going Good for the SEC
This year has turned out to be pivotal for Ripple in its case against the Commission. Back in July, the presiding judge, Analisa Torres, ruled partially in favor of the company, arguing that secondary sales of XRP do not constitute an investment contract.
This also had an immediate impact on the price, and you can probably tell when the ruling was issued by looking at the following chart:
Source: CoinGecko
Later, the Securities and Exchange Commission also decided to drop all charges against the company’s CEO, Brad Garlinghouse, and its Executive Chairman – Chris Larsen.
Will Ripple (XRP) Reach $10 if the SEC Loses the Case?
The above has given more hope to XRP bulls, who are already speculating how high the cryptocurrency can go in case of a victory against the SEC.
We decided to ask ChatGPT about whether $10 is in the cards, and the AI chatbot provided multiple arguments that have to be accounted for.
While winning the case can undoubtedly increase XRP’s price on positive sentiment alone, other factors that are important include, but are not limited to:
Restoration of trust
Potential partnerships
Market sentiment
Competitive landscape
ChatGPT said:
Even if Ripple wins its case against the SEC, there could be other regulatory challenges in the future, both in the US and internationally.
That said, many analysts have expressed their positivity, with some of the XRP price predictions being extremely outrageous. To check them out, you can take a look at our recent video:
The post We Asked Chat GPT if Ripple’s (XRP) Price Will Reach $10 in Case of a Victory Against the US SEC appeared first on CryptoPotato.
