XRP Price Increase Tied to Broader Crypto Market
Ripple’s XRP cryptocurrency has seen a surge in price recently, increasing by roughly 9.5% since yesterday afternoon. XRP’s movement seems to be tied to the broader crypto market, which is shaking off regulatory concerns and looking towards a potential pivot on interest rates by the Federal Reserve.
However, XRP’s growth has been slower compared to other cryptocurrencies such as Bitcoin and Ethereum, which have rallied nearly 70% this year. Ethereum’s price has also increased around 40%, and the combined crypto market has added around $200 billion.
Ongoing Lawsuit with SEC over Alleged Selling of Unregistered Securities
XRP’s legal battle with the Securities and Exchange Commission (SEC) continues over alleged selling of unregistered securities when the company raised $1.3 billion in an initial coin offering. Ripple and SEC have been locked in a two-year long legal battle that has affected XRP’s growth compared to other cryptocurrencies.
Ripple’s favorable ruling in the lawsuit against the SEC is expected soon based on past events and comments from the regulatory body. A ruling against Ripple could have significant implications for the wider crypto market and can affect not just XRP but also Bitcoin, Ethereum, and other major cryptocurrencies.
Classification of XRP as a Commodity
Binance, a major crypto exchange, and its CEO were sued by the Commodity Futures Trading Commission (CFTC) for offering unregistered crypto derivatives products to people in the U.S. Bitcoin, Ethereum, Litecoin, Tether, and Binance’s BUSD were referred to as commodities in the lawsuit.
XRP traders are anticipating price volatility due to speculation about Ripple and XRP after Bitcoin and Ethereum were classified as commodities by CFTC’s lawsuit against Binance.
Some believe that the potential classification of XRP as a commodity is a good thing. Ripple’s chief technology officer, David Schwartz, argued that XRP should be considered a commodity as it is a raw good that trades in commerce and is treated as equivalent to every other XRP.
XRP’s Recent Price Surge and Potential for Correction
XRP’s price surged nearly 15% to $0.58, its highest level in ten months, outperforming Bitcoin and Ether in the past 24 hours. Legal experts believe Ripple has a chance to win its lawsuit against the SEC, contributing to XRP’s recent rally.
However, technical indicators show XRP/USD facing the upper trendline of its prevailing rising channel, with a possible correction towards the lower trendline and a downside price target of $0.38 in April, down 35% from current levels. On a broader timeframe, the rising channel appears like a bear flag, indicating a potential bearish continuation with XRP falling to $0.189 by June, down over 65% from current price levels.
Despite this potential correction, investors remain optimistic on Ripple’s chances, leading to further potential upside for XRP. However, in current market conditions, more established cryptocurrencies like Bitcoin and Ethereum are preferred.
In conclusion, Ripple’s ongoing legal battle with SEC over alleged selling of unregistered securities has been affecting XRP’s growth compared to other cryptocurrencies. Traders are anticipating price volatility due to the speculation about Ripple and XRP after Bitcoin and Ethereum were classified as commodities by CFTC’s lawsuit against Binance. While XRP has seen a surge in price recently, there is still potential for correction in the near future.
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