3 - 5 minute read
In recent weeks, XRP has been in the spotlight due to its impressive performance among the top 50 cryptocurrencies by market cap. As of April 5th, XRP was trading at around $0.5122, having increased by 39.46% over the past month. So, what could catapult XRP to the position of the best-performing “major coin” in the next bull run? Let’s take a closer look.
According to data from TradingView, XRP has been the best-performing cryptocurrency among the top 50 cryptoassets by market cap in the past month. This trend could continue in the short-term, with some analysts predicting XRP to reach $0.70 by the end of April. However, the long-term outlook for XRP is less clear.
Some analysts believe that XRP has the potential to reach $10 in the next bull run, while others are more cautious, predicting a more modest increase to $5. The truth is that the price of XRP will depend on a range of factors, including market sentiment, adoption, and regulatory developments.
The SEC’s Lawsuit Against Ripple
One of the key factors that could impact the price of XRP is the ongoing lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC). The SEC alleges that Ripple conducted an unregistered securities offering when it sold XRP to investors. Ripple denies the allegations and argues that XRP is not a security.
John Deaton, a prominent attorney closely monitoring the case, recently shared his thoughts on why XRP should not be considered a security. Deaton argues that, according to the Howey Test, a digital asset or cryptocurrency, by itself, is not a security. However, it can be marketed, offered, or sold as an investment contract, which can be considered a security.
Deaton highlighted that XRP is not a security, even though Ripple may have offered or sold XRP as an unregistered security on specific occasions. He emphasized that the underlying asset – digital code – is not a security, and there has never been a case in U.S. history where the secondary sale of that asset was found to be a security.
Paul Grewal, who is Coinbase’s Chief Legal Officer, agrees with Deaton that secondary sales of digital assets should not be considered securities since there is no investment contract. This could be good news for XRP, as it could mean that the SEC’s case against Ripple is weaker than previously thought.
What Does This Mean for Traders?
For traders, the uncertainty surrounding the SEC’s case against Ripple could provide both risks and opportunities. If the case is dismissed or settled in Ripple’s favor, it could lead to a surge in XRP’s price. On the other hand, if the case goes against Ripple, it could lead to a significant decline in XRP’s price.
It’s important to note that XRP is not the only cryptocurrency facing regulatory challenges. Bitcoin and Ethereum have also faced scrutiny from regulators in recent years. However, the outcome of the SEC’s case against Ripple could have significant implications for the wider cryptocurrency industry.
XRP’s recent performance has been impressive, and some analysts predict that it could become the best-performing “major coin” in the next bull run. However, the long-term outlook for XRP is less clear, and the outcome of the SEC’s case against Ripple could have significant implications for the asset.
Traders should be aware of the risks and opportunities associated with XRP and other cryptocurrencies, including regulatory challenges and market volatility. As always, it’s important to conduct your own research and make informed decisions when investing in cryptocurrencies.