Ripple Holds Steady for Now – What’s the Next Move?
Ripple Labs’ XRP is one of the oldest blue-chip crypto tokens in the top 10 by market capitalization, which is currently holding at a $31 billion mark. However, its price performance has stagnated over the past few years due to several challenges, probably the most crucial of which is its uncertain regulatory status.
Regulatory Uncertainty Drags on
One of the main contributors to this has been the U.S. Securities and Exchange Commission – the regulator filed a claim against Ripple Labs in 2020 for allegedly selling XRP as an unregistered security to retail and institutional investors. Although the initial fine of almost $2 billion was reduced to merely $125 million by the decision of the federal court, this didn’t put an end to the case. Just days ago, SEC representatives appealed the ruling, potentially continuing the legal ambiguity surrounding XRP.
ETF Applications Spark Hope
At the same time in October, Bitwise and Canary Capital have filed applications for XRP Spot ETFs in the United States after similar applications were approved earlier this year for Bitcoin and Ethereum. So far, they remain under review with the Commission, with the less-than-sorted regulatory claims against Ripple Labs hurting chances of its eventual approval in the near future. However, for the most part, it’ll come down to the political landscape in the U.S. following the presidential election in November. Any clearer view as to whether XRP ETFs will see the light of day is likely not until early 2025.
At the time of writing, XRP has been sustaining above the $0.50 support mark for more than two months but unable to consolidate above the $0.60 resistance level. Based on current market sentiment, it would not be surprising for XRP to recapture some of its lost momentum in 2024. However, the continued regulatory uncertainty and price movements caused by crypto whale activity may contribute to increased volatility in the coming months.
