Altcoin
Decoding if XRP will reach the $1 mark after Ripple’s recent win
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| Last updated: January 30th, 2024
As the lawsuit between SEC and Ripple drags on, XRP seems to be benefitting from it.
Since December 2020, when the lawsuit began, people have been assuming that the end of XRP is near. However, of late the notion has been changing as courts continue to rule in favor of the crypto company.
Ripple wins it again
On 12 March, the District Judge allowed Ripple to use a fair notice defense by striking down SEC’s motion. This gives Ripple the opportunity to argue on the grounds that it was the SEC that failed to inform Ripple about how the sale of XRP could violate the pre-established laws.
Following this, XRP went up the price charts. It seems that Ripple is certainly gaining from the ruling. Apart from winning the favor, its token XRP also won investors’ support as the altcoin rallied by 9.06% within 24 hours.
XRP price action | Source: TradingView – AMBCrypto
But, it’s important to note that the rally lacks conviction. Since this was a euphoric rise and not an organic rise, on-chain performance did not exhibit any positive change either.
Transaction count on the network barely moved at all, which indicates that regardless of the rise, people did not participate in transactions. The month-long slippage has led to less than 1.4 million transactions being conducted on-chain.
XRP transaction count | Source: Coinmetrics – AMBCrypto
This lack of confidence could also be the result of the high volatility observed in the case of XRP. Being at its 5-month high, the volatility could be keeping investors from making a move out of fear.
XRP volatility | Source: Coinmetrics – AMBCrypto
However, with the effect of Ripple’s lawsuit judgment wins and XRP’s relatively higher market value of 1.1 to 1.2, one can’t rule out the possibility that investors could continue flocking in towards the altcoin.
XRP market value | Source: Coinmetrics – AMBCrypto
Furthermore, given the coin has managed to maintain the critical support of $0.71, investors are still betting on the possibility of XRP returning to $1.
