TL;DR:
History shows that the SEC’s actions against Ripple have had an immediate and drastic impact on XRP’s price movements.However, the latest crash could actually be a blessing in disguise for Ripple’s token, as there have been four-digit price surges in the past.Can XRP Surge by 4 Digits?
It’s safe to say that the lawsuit initiated by the US Securities and Exchange Commission has harmed Ripple’s native token, and the developments from the past 24 hours only solidified this narrative. XRP stood above $0.6 yesterday but lost 15% of its value, and it now struggles at around $0.51.
This all happened after the US watchdog decided to appeal a previous court decision by a US judge claiming that secondary XRP sales did not constitute securities sales.
Although the current landscape seems quite dire, history shows that it could turn out to be the start of a massive rally for XRP. Its price tumbled hard after the SEC’s initial lawsuit in December 2020, and it took just over a week to bottom out.
According to popular industry analyst Crypto Karlos, XRP shot up from $0.17 to almost $2 in the next four months back then. A similar 1,100% rally now would push its price to more than $6.
For anyone in the #XRPCommunity feeling distressed by the SEC’s decision to appeal the ruling. #XRP bottomed just 8 days after the suit was first announced. It then went on to rally nearly 1100% from 17¢ to $1.98 in the following 4 months.
That was with no backing from any court pic.twitter.com/E7BBcQHr69
— Crypto Karlos (@Crypto_Karlos) October 3, 2024
Will XRP ETFs Have an Impact?
Just hours before the SEC’s appeal, another important news regarding Ripple and its native token came out. Bitwise, a large crypto-focused company with already two active ETFs tracking BTC and ETH, said it has filed in Delaware to launch such a product tracking the performance of XRP.
Many analysts claimed that this is highly bullish for the current seventh-largest cryptocurrency. In fact, CrediBull_Crypto told their 423,000 followers that the XRP ETF will be the next approved in the States. Although this seems rather unlikely at the moment since the SEC is the US regulator that approves or rejects ETFs, a potential green light could be the propeller for a massive XRP rally.
Yes, I’m aware of the SEC appeal on the @Ripple case, but at the same time in the last 12 hours (seemingly unbeknownst to a lot of crypto twitter) @BitwiseInvest just filed for an $XRP ETF.
XRP will be the next approved ETF after $BTC and $ETH imo.
As far as narratives go, I… https://t.co/CBwx6IT9nc
— CrediBULL Crypto (@CredibleCrypto) October 2, 2024