XRP price and the number of coins held by holders depend on the result of the Ripple-SEC lawsuit. Amid regulatory battles, the coin’s value is down 85.75% from the all-time high of $3.4 reached in 2018.
However, as Ripple firmly stands in the way of the nearly two-year legal battle with SEC, many predictions and hope have been raised for the future of XRP.
Is XRP a security?
Whether the SEC will succeed in deeming XRP security remains an important question that could overturn future price action. If XRP were considered a security, the coin could disappear and lose its position.
Historically, cryptocurrencies that are considered securities have not received a positive impact for their price action. For example, when the price as well as the market capitalization of KIK’s Kin token was hit hard in the long battle against the SEC, KIK was forced to close the app, abandoning over 2 million users as their legal battle raged.
Currently, although updates regarding the Ripple-SEC lawsuit suggest that there is little chance of XRP being classified as a security, if that happens, buying XRP would also mean buying shares in the Ripple company.
At the time of this writing, there are no new updates on the lawsuit and the price is down 4% on the daily chart and 8% on the weekly chart.
Demand plays an important role in price action
For now, the Ripple-SEC lawsuit continues to show positive signs of a good ending for Ripple, which in turn should drive XRP price action.
After SEC refused to turn over documents related to Hinman’s speech despite repeated denials by the Court, the advantage seems to lean more toward Ripple.
Almost a week ago, Judge Torres granted Ripple permission to present 2 amicus curiae summaries despite SEC’s opposition.
Furthermore, in an October 15 tweet, Brad Garlinghouse told SEC that regulators have shown no concern over companies or individuals being harmed by their XRP token lawsuit.
It seems that the fate of XRP is tied to this lawsuit and if the verdict is in Ripple’s favor, the price is expected to at least surpass the 2018 ATH at $3.40.
If Ripple wins, some HODLers expect XRP to hit $100 after 2027. However, this scenario is quite unrealistic as XRP price growth also depends on macroeconomics. From current prices, XRP hitting the previous ATH alone would give HODLer a gain of over 650%.
*Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision.
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