Ripple-backed XRP Price Struggles to Rally towards $1 despite Regulatory Clarity
The XRP market is heavily bolstered by the adoption of Ripple payment products including On-Demand Liquidity (ODL) and RipppeNet.
On July 13, the United States judicial system through a ruling by District Judge Analisa Torres declared XRP exchanges’ sales as non-security. However, the ruling also tied the XRP institutional sales to investment contracts, thus security under the Howey test. Nonetheless, almost all centralized exchanges led by Coinbase Global Inc (NASDAQ: COIN) re-listed the digital assets for trading. As a result, XRP’s daily traded volume experienced a sharp uptick in the subsequent days towards $14 billion. Additionally, Ripple-backed XRP price doubled following the ruling from trading around 46 cents to as much as 95 cents.
The recent XRP correction has since eaten away significant gains made after the Ripple case ruling. According to the latest market data, XRP price exchanged around 62 cents, down more than 25 percent from this year’s high. Additionally, XRP’s average daily traded volume was about $1.2 billion, a huge drop from the recent highs of about $14 billion.
According to John E Deaton, founder of Crypto-law.us, the ultimate trigger for a parabolic rally of XRP or any other altcoin lies with Bitcoin. Historically, every major crypto bull rally has been triggered by the Bitcoin halving, which is less than a year away.
If I had told you #XRP would get regulatory clarity but not hit $1, many wouldn’t have believed it. Likewise, if I had told you PayPal would issue a stable coin on Ethereum but #ETH wouldn’t increase at all, many wouldn’t have believed it. Like it or not, #Bitcoin drives this…
— John E Deaton (@JohnEDeaton1) August 8, 2023
Ripple-backed XRP Price and Market Analysis
The XRP price is heavily bolstered by the adoption of Ripple payment products including On-Demand Liquidity (ODL) and RipppeNet. Additionally, the mainstream adoption of XRPL has helped widen the utility of XRP including NFT minting and DeFi operations. As a result, most experts believe XRP price is on the pathway to trading above $1 in the near term perspective.
However, the ongoing XRP price correction could push the digital asset towards a notable support zone between 53 and 58 cents, which acted as significant resistance levels before last month’s ruling.
The mainstream adoption of digital assets is expected to significantly accelerate the use of XRP in cross-border payments. As the fifth largest digital asset with a market capitalization of about $32 billion and deep trading liquidity in different pairs, XRP is well poised for further growth, more so fueled by institutional adoption.
Worth noting that Ripple is already working with several global central banks in developing interoperable CBDCs.
Additionally, the XRPL has a private chain that helps in the seamless issuance and burning of stablecoins by institutional investors.
Bigger Picture
Ripple is yet to fully settle the case with the SEC despite the recent ruling. Notably, the SEC through Chair Gary Gensler has severally stated that the agency does not agree with Judge Torres ruling and thus is preparing to appeal in the next circuit. As a result, the XRP price could continue to lose upward momentum until the case is completely settled.
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