Disclaimer: The information presented does not constitute financial, investment, trading or any other type of advice and is solely the opinion of the author.
Ripple (XRP) has stabilized after gaining momentum a few weeks ago and has not fluctuated like other cryptocurrencies.
While XRP recently established itself as the fourth largest asset, Ripple has experienced a significant increase in accumulation among major holders over the past week.
Despite this steady accumulation trend, total supply has been declining recently in profitable locations. So, because of this, XRP holders are currently in a difficult situation.
And XRP holders are wondering whether a favorable court ruling will help the coin gain further momentum and make 2024 different.
Ripple Labs and XRP — What’s the Relationship?
XRP is the cryptocurrency that Ripple Labs uses to conduct transactions on its network.
Ripple is a centralized fintech company that started as Ripplepay in 2004, but was later co-founded in 2012 by Chris Larsen and Jed McCaleb with the vision of creating a faster and safer way to transact across the world.
Although the two are used interchangeably, Ripple is a technology company while XRP is an open-source digital asset.
The cryptocurrency operates on a blockchain known as the XRP Ledger (XRPL), with transactions facilitated by the RTXP or Ripple transaction protocol.
It is pre-mined, unlike many other cryptocurrencies that have a maximum token supply of 100 billion.
The main purpose of the cryptocurrency is to serve as a payment layer that helps transact with the Ripple network.
However, it is traded as a cryptocurrency available on a variety of exchanges, including options, swap exchanges, spot exchanges, futures, and custodial and non-custodial exchanges.
Fighting with the SEC
The U.S. SEC filed a lawsuit against Ripple Labs in 2020, accusing it of selling XRP as an “unlicensed security” and claiming it violated the law by distributing $1.3 billion worth of the cryptocurrency to interested parties.
The biggest debate here was whether XRP was a security, and therefore a stake in Ripple, or a cryptocurrency like Bitcoin.
Ripple has been wrangling with the SEC for several years. The SEC argued that Ripple’s sales of XRP to investors were to fund itself, and he relied on the 1946 SEC ruling in SEC v. W.J. Howey Co. to make his argument.
At the same time, he said that the decisive factor in determining whether an investment contract is collateral or not is whether the investor has control over the profits. Ripple Labs, on the other hand, claimed that the SEC did not notify or warn the organization.
After three years of deliberation, the case was finally decided in July 2023. The court ruled that XRP is not a security in itself.
The SEC also denied the request for an interlocutory appeal and was later forced to drop securities violation charges against Ripple and XRP.
While the SEC has authority over the sale of cryptocurrencies to institutions, trading cryptocurrencies on exchanges is not considered a securities transaction.
What does ChatGPT have to say?
Although ChatGPT is not up-to-date and does not make future predictions, I used Jailbreak to ask questions about the future of XRP, considering the current scenario.
When asked what the future of XRP looks like given the favorable court ruling, Bott said the cryptocurrency could see near-term momentum as investor confidence increases.
Source: ChatGPT
However, this trend may slow down somewhat in the long run as the market is influenced by various factors such as adoption, sentiment, and regulatory clarity.
The bot also stated that while positive developments on the legal front are a positive sign, it is also important to track other developments and potential regulatory changes that could affect the price of XRP in the future.
When I provided ChatGPT with context on the press time prices of Bitcoin and Ethereum and asked what the price of XRP would be in Q1 2024, the bot boldly claimed that the cryptocurrency would reach $10 per token.
These highs have been called the ‘resurgence of the century’, but cautioned that predictions are just guesses and actual prices could vary significantly.
Lastly, I asked whether cryptocurrencies will surpass ATH in 2024. The bot gave me a confident answer, saying that XRP will “explode” ATH in 2024 and reach unprecedented heights, leaving previous all-time highs in the dust.
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Let’s take a look at the price movement of XRP.
Source: XRP/USD, TradingView
Ripple price is up 1.5% over the past week after a slight rebound from the $0.57 support level. RSI is moving linearly despite being just above 50, indicating minimal buying pressure.
MACD appears to confirm this trend by displaying a small green histogram above the half-line when the line moves linearly, indicating weak momentum in favor of buyers.
conclusion
The recent surge seen on the token’s charts appears to have sparked excitement for XRP among cryptocurrency market participants.
Additionally, the recent development of large whale transfers around XRP suggests an increase in trading activity surrounding the cryptocurrency.
ChatGPT also appears to be bullish on the coin, claiming it will make the “comeback of the century”, predicting the coin’s price will reach $10 per token in 2024.
However, you should keep in mind that ChatGPT is nothing more than a computer program. It’s not a person. It’s also not entirely accurate. So before making any investment choice, DYOR is the only way to proceed.