Ripple (XRP) had been growing steadily with its price above $1. However, the bear market resulted in the XRP coin going below the dreaded $1 mark. At the time of writing, the cryptocurrency stands at a price level of $0.92. The price has increased by 10% in the past twenty-four hours while the trading volume has dropped by 12%. The $1 price level may be acting as a strong resistance once again.
The market sentiment for XRP is bearish – as expected. Out of the 26 technical indicators, 13 stand at a sell position with ten at neutral and only three indicators at a buy position. Both the oscillators and moving averages are majorly bearish.
Developments in the SEC v. Ripple Labs lawsuit
Since the SEC filed a lawsuit against Ripple Labs in December 2020, it had become a major deciding factor of the price of XRP. The SEC alleges Ripple Labs had been selling XRP as illegal security. If proven, the lawsuit will have dire consequences for the cryptocurrency. After the initial shock wore off, investors gradually returned to XRP with their confidence. However, news of the lawsuit does send shockwaves in the price developments of the cryptocurrency.
Ripple Labs had a strong standing the last time any major development was revealed. The strong position of the firm also strengthened the position of the cryptocurrency in the market. However, recent news was not as favorable for XRP. The SEC had been leveraging its MoUs with foreign regulators in order to dig up information of Ripple Labs and a letter was addressed to the presiding judge by the firm’s counsel against it. The judge approved the foreign discovery of the SEC which served a blow for Ripple Labs.
Is Ripple (XRP) still a good investment?
The swing back to the top ten cryptocurrencies after a hard crash as the lawsuit was filed has cemented the position of Ripple in the market. However, Ripple XRP has a spot in the top five cryptocurrencies but it fell to seventh. Predictions for cryptocurrency are largely bullish. Wallet Investor projects the price of XRP crypto to be at back above $1 in one year’s time while the five-year price is at $2.3. Digital Coin Price predicts a price of $1.39 by the end of 2021 while it is expected to climb towards $4.25 by the end of 2028.