Why is Ripple being sued by the SEC?
On December 22, 2020, the US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple, saying that the San Francisco fintech business raised over $1.3 billion via illegal means. Ripple’s native coin, XRP, was used in improper securities sales, according to the SEC.
Impact of the Lawsuit on the Price of XRP
XRP investors were alarmed by the litigation, which led them to feel they were owning a security. Many XRP maximalists attempted to calm the market by claiming that since the bulk of XRP trade takes place outside of the United States, the SEC’s authority had no influence on them and would have no impact on the price. They were mistaken. In the days after the SEC’s lawsuit notice, XRP lost about 70% of its value. The price of XRP plummeted from $0.58 to $0.17.
Many investors felt that XRP will fall to zero as the attitude shifted to pessimistic. XRP, on the other hand, demonstrated that the lawsuit couldn’t stop it from having a big price increase. The price of XRP has always tracked that of the rest of the altcoin market. As a result, as the altcoin market soared in March 2021, so did the price of XRP. Investors that purchased at the bottom of the litigation meltdown saw their XRP holdings increase by almost 1,000%.
Predictions for the Price of XRP
The price of XRP has proved that the lawsuit may significantly reduce its value, but it cannot prevent it from experiencing a bull run. XRP is currently trading at $0.39. Is there a chance of a breakthrough, and if so, where might the XRP top be?
Technical Analysis of XRP
XRP has broken through the lows it reached in June 2021 and is now challenging the high achieved in May 2017 before a blow-off peak. If XRP can maintain this level of support, it indicates that the bottom has been reached and that upward potential is probable. But how high might the price of XRP rise?
XRP has shown that it moves in lockstep with the rest of the market. And if the altcoin market bubble bursts, as we predict, XRP will soar to new heights. Fibonacci extensions have been shown to be a good predictor of peaks in a variety of financial markets. The peak of assets, according to the Fibonacci extension, is at the 4.236 extension. So, according to our XRP price forecast, the peak will be at $7. Is today a good time to invest in XRP?
Assume XRP hits $7, at which point the case will be resolved. Many investors will be wondering whether XRP will have a blow-off peak and rise much higher than our forecast. That, we suspect, will be a ruse. With Bitcoin and Coinbase, one of the finest crypto exchanges, the market has done this previously and caught investors off guard.
When Coinbase launched its first public offering (IPO) on April 14, 2021, the price of bitcoin was about $65,000. Bitcoin was on a strong bull run at the moment, having risen more than 1,400 percent from its March 2020 lows. The market was exceedingly positive, and many investors believed that Bitcoin would reach $100,000 after Coinbase’s IPO. The price of Bitcoin dropped by 54% as a result.
A same situation might happen with XRP, taking investors off guard once again.