"The legal conflict between Ripple and the SEC seems to have no end."
XRP fans are not losing hope.
The XRP cryptocurrency has been in a downward trend for years.
The future of the #XRP🚀 price remains uncertain. While some see bullish signs, there is also a possibility that the cryptocurrency issued by the Ripple company will continue to stagnate.
As can be seen in the TradingView chart below, XRP has yet to surpass its all-time high reached in January 2018 – almost 7 years ago!
Market analyst known on social media as #CryptoTank shared an intriguing insight on X as to why the price of XRP has not seen any notable movements.
According to their analysis, although there are around 56 billion XRP in circulation, this number can be “misleading.” A considerable portion of these assets are held by whales or stored in private wallets, which reduces the number of tokens available for active transactions.
CryptoTank estimates that only about 20% of XRP, or about 10 billion, are active on an average day, which determines market liquidity. This amount of active XRP is crucial to avoid large price fluctuations, as with low liquidity, even small buy or sell orders could lead to sharp movements in the cryptocurrency’s value.
XRP has the potential to reach significantly higher value if adopted on a large scale by financial institutions, he notes, comparing the daily settlement volumes of financial giants such as #SWIFT , JP Morgan, Bank of America and SBI Holdings to the potential of Ripple’s network.
Based on that, it is estimated that if just 10% of the settlement volume of these institutions were to move to the Ripple network, around $2.5 trillion in transactions per day would be needed. To ensure frictionless transactions, it is estimated that AMM liquidity pools would need to hold twice the value of daily transactions, i.e. around $5 trillion.
Dividing the total value needed in AMM funds ($5 trillion) by the total amount of XRP in circulation ($10 billion) results in a target price of $500 per XRP, the analyst says.
The legal battle with the SEC
However, Ripple still faces a major hurdle: its legal dispute with the SEC, which has also become a drag on the XRP cryptocurrency.
In early October, the SEC filed an appeal of federal Judge Analisa Torres’ ruling that Ripple’s sales of XRP on exchanges did not violate securities laws.
Ripple has responded with a counter-suit, arguing that there can be no “investment contract” without clear contractual obligations.
This confrontation has kept the market in uncertainty, causing the price of XRP to drop by more than 10%, which currently stands between $0.50 and $0.54 per unit.
However, this price range has served as support on multiple occasions this year, and many see it as a key psychological zone.
#RippleXRP continues to expand
Despite legal challenges and weak cryptocurrency activity in the market, Ripple has not stopped its expansion. The company launched new cryptocurrency custody services to help banks and fintech companies store digital assets.
This new approach from Ripple Custody has seen 250% year-over-year growth, highlighting interest in digital asset custody as an emerging trend.
With clients such as HSBC and Société Générale, Ripple is consolidating its presence in more than 20 countries. This growth could be a key factor in the future of XRP, if the company manages to integrate its cryptocurrency into the global financial system.
XRP’s fate is far from sealed. While XRP has the potential for a bullish rally driven by institutional adoption and the development of new financial products, legal issues and low liquidity could continue to hold back its growth. The future will tell whether XRP will be able to overcome these challenges and regain its shine in the market.
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