The recent appeal by U.S. regulators against blockchain payments company Ripple may lead market participants to adopt a more risk-averse approach to XRP in the near term, according to one cryptocurrency analyst.
These comments come despite recent filings not directly challenging the ruling that XRP is not a security. The appeal asks the court to review decisions made by Ripple CEO Brad Garlinghouse and co-founder Chris Larsen regarding the sale of Ripple XRP on exchanges and private XRP sales.
Legal uncertainty could lead to increased volatility in XRP (XRP) price, analysts believe, potentially causing the asset to fluctuate by nearly 50%.
Price forecasts are ‘highly contingent’ on regulatory developments
“The price of “It depends,” he said. Report seen by Cointelegraph.
This hesitation could lead to near-term price volatility for XRP as the market awaits more concrete results.
The last time XRP topped $0.80 was in March 2022. The highest price this year was $0.71, reached in March, according to TradingView data.
At the time of publication, XRP is trading at $0.55.
Stuart Alderoty, Ripple’s chief legal officer, recently claimed that the briefing process will be extended until July 2025.
XRP is trading at $0.55, up 0.42% since October 18th. Source: TradingView
Lee explained that the final outcome could have a significant impact on the price of XRP.
“A favorable ruling or increased international support for Ripple could lead to a rise in the price of XRP. On the other hand, an unfavorable outcome could cause prices to fall,” Lee wrote.
This appeal introduces ‘regulatory ambiguity’.
“This appeal further deepens regulatory ambiguity, especially in the U.S. cryptocurrency sector. “As the final legal outcome is still uncertain, investors may take a more cautious stance,” he added.
relevant: Ripple Adds Smart Contracts to XRP Ledger
On October 16, Cointelegraph reported that CME Group Managing Director Tim McCourt said the first major steps have been taken towards an XRP exchange-traded fund (ETF).
“We have the XRP reference rate and real-time index, which is the first step in building this ecosystem,” McCourt said.
magazine: Fake Rabby wallet scam linked to Dubai cryptocurrency CEO and more victims