13 June 2024
It is no longer surprising that the XRP price movement has stagnated around $0.5 in the past few months despite various positive developments for Ripple. This lackluster price action has left many XRP investors feeling wanting, especially considering the positive price action of other cryptocurrencies.
Sean McBride, a former director at Ripple, believes XRP is unlikely to register a significant breakout until Ripple’s ongoing lawsuit with the SEC concludes.
Ongoing SEC Lawsuit Weighs Heavily On XRP
Ripple’s legal battle with the SEC has been dragging on for over three years, and it continues to cast a dark cloud over XRP’s price. Ripple scored a partial win in July 2023 when Judge Torres decided that XRP to retail investors is not a security. This decision resulted in a temporary increase in the price of XRP to $0.90. However, the embattled crypto token now finds itself stuck below $0.50, unable to break out despite various rebounds and periods of dominance by the bulls.
A recent example of this repetition was observed in the past 30 days when a period of bull dominance saw XRP trading just above the $0.5 price mark for three weeks. However, like before, XRP’s price has failed to maintain its position above this level, and the crypto now finds itself trading around $0.48.
As McBride noted on social media, nothing significant will happen to XRP’s price until Judge Torres makes her decision. This is in relation to the pending decision on whether the sale of XRP to institutional investors qualifies as the sale of securities. According to the former Ripple director, a clear judgment from the judge would finally enable institutional investors to decide their stance on Ripple and XRP.
“Nothing significant is going to happen with the price of XRP until Judge Torres makes her decision,” McBride said. “This could open up the door for US institutions working with Ripple to ‘flip the switch’,” he continued.
I think I’ve mentioned this before. Nothing significant is going to happen with the price of XRP until Judge Torres makes her decision. So anyone expecting anything different is delusional. The next big piece of this is clear legislation in the US. Hopefully that is on the way…
— Sean McBride (@seanmcbride16) June 11, 2024
What Will It Take For XRP Price To Break Out of Its Slump?
Before XRP can truly break out of its slump, the lawsuit with the SEC must be resolved. As long as the case drags on, uncertainty will hang over the token and suppress the price. A settlement or victory for Ripple would remove this roadblock and likely send the price of XRP surging. Of course, XRP would need to outperform the market to compensate for lost ground over the past three years. However, a loss could deal a major blow to XRP and cause the price to plummet further.
According to one crypto analyst known as EGRAG CRYPTO, it is only a matter of time before all the rotational profits start flowing into XRP. This, in turn, would lead to XRP’s price breaking out of a descending triangle and pushing towards a target of $7.5.