The lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Ripple had a significant impact on the price and perception of XRP. To speculate on the XRP price if the lawsuit never occurred, we consulted Open AI’s most advanced AI-powered chatbot, ChatGPT4o.
In December 2020, the SEC filed a lawsuit against Ripple and its executives, accusing the company of unregistered securities sales with its XRP sales, and accusing its executives of aiding and abetting the sales.
Much has changed since December 2020, and there are many factors to consider when analyzing XRP’s potential trajectory if the SEC never filed the lawsuit.
Market Sentiment and Confidence
According to ChatGPT4o, investor confidence in XRP would likely have been much higher without the lawsuit. Regulatory uncertainty often dampens investor enthusiasm, and in this case, it would have been absent.
The general sentiment around XRP would have been more positive, potentially attracting more retail and institutional investors. The perceived stability and legitimacy of XRP would have been stronger, contributing to a more robust market presence.
Exchange Listings, Partnerships, and Adoption
Following the lawsuit announcement, many exchanges delisted XRP. Without the lawsuit, XRP would have remained listed on more exchanges, making it more accessible to a broader audience and increasing liquidity.
Major exchanges like Uphold have shown consistent support for XRP, but this support only came after the July 2023 ruling that determined that XRP itself was not a security, giving XRP legal clarity.
Ripple has also been working on partnerships with financial institutions and payment providers. The lawsuit slowed down some of these efforts. Without it, Ripple’s partnerships might have expanded more rapidly, positively influencing XRP’s utility and price.
Bull Run Momentum
The crypto bull run of 2021 saw significant gains across the market. XRP did participate in this to some extent but was held back by the lawsuit. Without the legal overhang, ChatGPT4o believes XRP could have experienced higher peaks, potentially surpassing its 2018 all-time high.
Given that XRP reached $1.96 in April 2021 despite the lawsuit, ChatGPT4o stated that without the lawsuit, it could have surpassed its previous all-time high of $3.84, potentially reaching a range of $4-$5.
According to ChatGPT4o, by mid-2024, XRP would have been trading significantly higher than its current price, possibly in the range of $2-$3, if not higher, depending on broader market conditions and ongoing adoption.
Another prominent analyst recently set a lofty target for XRP based on the advantages of the XRP Ledger (XRPL), and XRP has unrivaled potential in the cryptocurrency market. ChatGPT4o’s prediction acknowledges that fact as the main reason for its underperformance is the lawsuit.
⚠️Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.
