The U.S. Securities and Exchange Commission (SEC) has filed a fresh appeal in its ongoing case against Ripple, raising new concerns about XRP’s short-term performance. Though the appeal doesn’t directly challenge the previous court ruling that XRP is not a security, it seeks to revisit the legality of Ripple’s XRP sales on exchanges and personal sales by top executives Brad Garlinghouse and Chris Larsen. Analysts warn that this renewed legal uncertainty could trigger significant market volatility.
XRP Price Volatility Looms
The latest development is likely to prompt a more cautious, risk-off stance among investors. According to Ryan Lee, chief analyst at Bitget, XRP’s price could fluctuate within a broad range of $0.50 to $0.80 by year-end, depending heavily on the regulatory outcome. “Sentiment within the U.S. market will play a critical role,” Lee emphasized in an Oct. 18 report.
At the time of writing, XRP is trading at $0.55, with its highest price this year—$0.71—recorded in March. This makes the $0.80 threshold, last seen in March 2022, an elusive target unless Ripple secures favorable legal momentum.
Regulatory Ambiguity Clouds Market Sentiment
Lee warned that the SEC’s appeal introduces further regulatory ambiguity. “Investors are likely to adopt a more cautious stance until more clarity emerges,” he said. The legal process could drag on, with Ripple’s chief legal officer, Stuart Alderoty, indicating that proceedings may extend into mid-2025.
“A favorable ruling or increased international support for Ripple could drive a price surge,” Lee noted. However, an unfavorable outcome could push XRP prices downward, compounding market risks.
XRP ETFs on the Horizon?
Despite the regulatory headwinds, there are signs of optimism. On Oct. 16, CME Group executive Tim McCourt revealed progress toward an XRP exchange-traded fund (ETF). “We now have an XRP reference rate and real-time index—key steps in developing this ecosystem,” McCourt said.
Also Read: Ripple Delays IPO Amid SEC Battle – XRP At $0.54, Up 1.66% This Week
With the SEC’s appeal casting a shadow over Ripple’s legal standing, XRP faces heightened volatility. Traders and investors are bracing for wild price swings, underscoring the unpredictable nature of regulatory outcomes in the crypto space. For now, all eyes remain on the unfolding legal developments—and whether Ripple can turn the tide in its favor.
This ongoing battle between Ripple and the SEC highlights the delicate balance between regulation and innovation, leaving XRP holders on edge as they navigate the unpredictable legal landscape.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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