XRP May Face Volatility As Market Awaits ‘Real Results’ – Analyst
Ripple's latest appeal by the US regulator over blockchain payments could prompt market participants to take a more risk-off approach to XRP in the short term, according to a crypto analyst.
The comments come despite the recent ruling that XRP is not a security. The appeal asked the court to review the decision on Ripple's XRP sale by Ripple CEO Brad Garlinghouse and co-founder Chris Larson on the exchange and private XRP sale.
Legal uncertainty could widen XRP's price volatility, with the asset fluctuating in a range of nearly 50%, the analyst believes.
Price forecast ‘higher' on regulatory developments
“The price of XRP may fluctuate between $0.50 and $0.80 by the end of the year, although this forecast will depend on regulatory developments and changes in sentiment, especially in the US market,” Bitgate chief analyst Ryan Lee commented on October 18. A report by Cointelegraph.
This hesitancy may translate into short-term price volatility for XRP as the market expects more concrete results.
The last time XRP crossed the $0.80 mark was in March 2022. The highest price this year was $0.71, which was reached in March, according to TradingView data.
At the time of publication, XRP is trading at $0.55.
Ripple's chief legal officer Stuart Aderotti recently said the winding-up process could be extended to July 2025.
XRP is trading at $0.55, up 0.42% since October 18. Source: TradingView
Lee noted that the final outcome could weigh heavily on XRP's price.
“A positive decision for Ripple or an increase in global support could lead to a significant price increase for XRP. On the other hand, a negative outcome could push the price down,” Lee wrote.
The appeal introduces ‘regulatory ambiguity'
“The appeal introduces more regulatory ambiguity, especially in the US cryptocurrency sector. As the final outcome of the law is uncertain, investors may take a more cautious stance,” Lee added.
Related: Ripple to Add Smart Contracts to XRP Ledger
On October 16, Cointelegraph, CEO of CME Group, Tim McCourt, the first major step was taken to XRP exchange-traded funds (ETF).
“We have an XRP benchmark rate and a real-time index,” McCourt said.
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