Belgium (CoinChapter.com) — As all cryptocurrency markets show bullish momentum again, many people keep an eye on XRP. Ripple’s native asset is still subject to a significant SEC lawsuit, although its price rally seems solid. Despite these developments, not everyone in the community is giving in to FOMO yet.
XRP Holds The $1 Support Level
Contrary to what most people had expected – or perhaps hoped – the value of XRP did not go below $1 for very long. After significant selling days, its price declined from $1.45 to $0.985 before bouncing back to the $1.4 range. Speculators and traders have made good money from these price swings, yet they are not the ones who will increase the appeal of Ripple’s asset. To many diehard fans, the $1 support level serves as a crucial floor for XRP.
Despite not convincingly breaking through that floor, no one really expected to see the current price level again so quickly. Several factors contribute to the current success of XRP in the price department. However, not all of them are long-term indicators, as most of them will stand or fall based on what the SEC lawsuit brings. The outcome of that lawsuit remains uncertain, yet the community has some strong opinions on this matter.
SEC Lawsuit Sparks Mild Enthusiasm
Depending on whom you pose the question to, the SEC lawsuit is either a problem or a temporary bottleneck. As the SEC now wants to ask foreign regulators for assistance, Ripple’s legal team intends to make sure that doesn’t happen. This can be seen as a sign of trying to cover up something. Data from crypto exchanges based outside of the US can shed a different light on this ongoing investigation, after all.
According to Ripple, they don’t have access to this data. However, they want to prevent the SEC from establishing a full timeline to determine if Ripple manipulated the XRP price in any way, form, or shape. So far, nine requests have been made to foreign regulators, with nothing to show for it as of yet. Depending on the judge’s decision, the SEC may either continue to make requests or be forced to cease these activities immediately.
Community members on Reddit remain on the fence about this ongoing trial. To some, the lawsuit is a sign to keep buying and holding XRP as the “SEC doesn’t stand a chance”. Others remain fearful that a negative outcome for Ripple can “destroy the entire ecosystem”. Both options have validity during these uncertain times, although one can’t interpret either as investment advice.
Will The XRP Momentum Continue?
Even though many traders are happy with XRP, there is no reason for the price to go up [higher]. The entire market is driven by speculation. This level of speculation can lead to Redditors claiming “yesterday was the last chance to get XRP cheap.” Most people are only interested in the price action for speculative reasons rather than the long-term viability of what Ripple tries to build. There is no substance to warrant this price trend other than benefitting from Bitcoin and Ethereum’s momentum to the industry.
Interestingly, there are a few people who are fed up with just the price talk as well. Not because there is nearly nothing else being discussed on Reddit, but rather because some people believe XRP can hit $9. Stranger things happen in the cryptocurrency industry, but such outlandish projections can rub many people wrong. There is no “proof” of why that price is even attainable, making posts like this unnecessary clutter for those who seek actual answers.
It is not the first time the XRP price is moving up without any reason. Nothing has changed behind the scenes and speculation continues to drive the market higher. Eventually, there will no longer be enough people willing to buy XRP, as there is no immediate reason to own this asset today.
With the SEC lawsuit still looming over this project, the future remains incredibly uncertain. Purposefully trying to prevent the US securities regulator from obtaining crucial information is a very shady move. While the approached regulators have no interest in collaborating on this matter, it is doubtful the SEC will leave it at that. Looking beyond the price action is essential, yet there is nothing to warrant excitement other than what was known weeks and months ago already.
Featured image from Pixabay, Chart from Tradingview.com