It is no longer surprising that XRP’s price movement has stagnated around $0.5 in recent months despite several months positive developments for Ripple. This lame price action has left many XRP investors feeling shortchanged, especially given the positive price action of other cryptocurrencies.
Sean McBride, a former executive at Ripple, believes XRP is unlikely to register a significant breakthrough until Ripple’s ongoing lawsuit with the SEC is concluded.
Ongoing SEC lawsuit weighs heavily on XRP
Ripple’s legal battle with the SEC has dragged on for more than three years and continues to cast a dark cloud over the price of XRP. Ripple achieved a partial victory in July 2023 when Judge Torres ruled that XRP is not a security for retail investors. This decision resulted in a temporary increase in the price of XRP to $0.90. However, the controversial crypto token is now stuck below $0.50 and cannot break out despite several rebounds and periods of dominance by the bulls.
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A recent example of this recurrence was observed over the past 30 days when a period of bull dominance saw XRP trading just above the $0.5 price for three weeks. However, as before, the price of XRP has failed to maintain its position above this level, and the crypto is now trading around $0.48.
As McBride noted on social medianothing major will happen to the price of XRP until Judge Torres makes her decision. This relates to the pending decision on whether the sale of XRP to institutional investors qualifies as the sale of securities. According to the former Ripple director, a clear judgment from the judge would finally allow institutional investors to determine their position on Ripple and XRP.
“Nothing major will happen to the price of XRP until Judge Torres makes her decision,” McBride said. “This could open the door for US institutions working with Ripple to flip the switch,” he continued.
I think I’ve mentioned this before. Nothing major will happen to the price of XRP until Judge Torres makes her decision. So anyone who expects anything different is delusional. The next big piece of this is clear legislation in the US. Hopefully that’s on its way…
— Sean McBride (@seanmcbride16) June 11, 2024
What will it take for the XRP price to break out of its slump?
Before XRP really can come out of his slumpthe lawsuit must be resolved with the SEC. As long as the case continues, uncertainty will linger over the token and suppress the price. A settlement or victory for Ripple would remove this roadblock and likely increase the price of XRP. Of course, XRP would have to outperform the market to make up for the lost ground over the past three years. However, a loss could cause a major blow to XRP and cause its price to drop further.
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According to one crypto analyst Known as EGRAG CRYPTO, it is only a matter of time before all rotation profits start flowing into XRP. This, in turn, would lead to the price of XRP break out of a descending triangle and towards a target of $7.5.