As the XRP lawsuit between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) nears a resolution — the final ruling at the district court level — the crypto community is abuzz with speculation about the potential ramifications for XRP’s price. Notably, prominent crypto expert Rachel Renee expressed a dissenting view on X, claiming that the upcoming Ripple-SEC ruling will not significantly impact XRP’s price, contrary to many investors’ expectations.
How will the price of XRP react?
Renee analysis The story begins with a realistic look at the nature of the legal decision itself, which will punish Ripple. “It’s simply about the details of how Ripple is being punished for some minor infractions that they’ve committed,” Renee explained.
She expressed skepticism that this legal closure could be a catalyst for a significant price surge in XRP. According to Renee, the pivotal moment for a potential price surge was when Judge Torres initially provided regulatory clarity in July of last year, a milestone that has already been passed without lasting impact. “The point at which the clarity was set was the right time to see it move significantly higher. That didn’t happen,” Renee stated.
Related reading
She further explained that institutional investors, who would be the primary drivers of such a surge, simply needed confirmation that they were legally allowed to buy, hold, and use XRP. That permission had already been granted. Thus, the details of how Ripple was reprimanded for early XRP sales were unlikely to impact their investment strategies: “Institutions just needed to hear that it is now legal to buy, hold, and use XRP. That’s it. They don’t need to hear whether #ripple will be penalized for a few early XRP sales.”
“I hate to be the one to say it,” Renee concluded. “But I don’t think the recent Ripple/SEC/Torres event will do anything to the price of XRP. The institutions that might push for a significant price increase already know that it is legal to deal with XRP, and the details of the Ripple penalty are unlikely to influence their decisions further.”
She also acknowledged that while a slight spike in XRP’s price could occur following the decision, she firmly believes that “it won’t be the massive rally” that many are hoping for. Instead, Renee suggested that XRP’s big market moves are likely to come from new developments that demonstrate XRP’s utility and adoption by major global players, such as banks and financial institutions.
Related reading
In contrast to Rene’s moderate forecast, Bas van Gestel, another voice from the XRP community, said, foot Van Gestel claimed that the end of the Ripple-SEC case would spur a significant rally in the price of XRP due to enhanced regulatory clarity that would attract more investors, institutional adoption by major banks, and global partnerships that would expand the use of the currency.
In response to Van Gestel’s optimism, Renee reiterated her view that much of what was expected to drive the price rally has already happened, with regulatory clarity being established over a year ago. She raised crucial questions about the timing of institutional adoption and the major global announcements that Van Gestel cited as catalysts, suggesting that while these developments are possible and potentially influential, they have yet to materialize in a way that would meaningfully impact the XRP price.
“Since regulatory clarity was provided over a year ago, why haven’t we seen any major announcements? I believe these announcements will come. But not as part of the final closure of the Torres case,” Renee claims.
At the time of publishing this report, XRP was trading at $0.5632.
Featured image created using DALL E, chart from TradingView.com
Comments are closed, but trackbacks and pingbacks are open.