The cryptocurrency community is predicting that the price of the $XRP token will drop by the end of the year, even after it surged over 40% in a month after reports revealed that both Ripple and the U.S. Securities and Exchange Commission (SEC) are looking for a ruling in their long-running legal battle through a so-called summary judgment.
According to CoinMarketCap’s price estimates feature, the cryptocurrency community sees the price of the cryptocurrency drop by 15.5% from its current $0.476 level to around $0.402 by the end of the year.
The figure marks a sharp decline from XRP’s current levels and notably suggests that while the token has been rallying, the community sees it as a short-lived rally that will end up being undone through a sell-off.
The community’s predictions for the end of October are around $0.42, while for the end of November the cryptocurrency community sees XRP trade at $0.38, meaning that they see a significant dip before a recovery to close 2022.
The price of XRP has recently surged, as both the SEC and Ripple have asked for a swift judgment in the regulator’s case against the fintech firm over its sale of XRP tokens. Both are looking for a summary judgment, according to recently filed documents.
The filings suggest neither party wants the legal action to continue to a full trial. The SEC sued Ripple and two of its executives in 2020, alleging they sold unregistered securities when they issued $1.3 billion worth of XRP tokens. Ripple denies XRP is a security.
Not everyone is bullish on the cryptocurrency thanks to the perceived end of the legal battle affecting one of its ecosystem’s largest players. A widely-followed cryptocurrency analyst, DonAlt, has earlier this month revealed he sees the price of XRP pull off a massive price rally if the SEC’s lawsuit against Ripple is settled. If Ripple wins, he said, the XRP token is going to “giga moon basically,” and a “lot of people will buy back in.” The analyst expects to sell into that surge.
According to DonAlt, if Bitcoin was “looking solid into $21,000,” then he could hold onto his XRP bet until it hits $1, if not $2 or $3” per token.
Ripple settling the lawsuit could lead to an XRP supply shock, which presumably would lead to a price surge as demand would remain the same, while supply plunged. That’s according to legal expert and XRP supporter Jeremy Hogan, who has been following the case.
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