In the midst of a recent decline in the cryptocurrency market due to concerns over global inflation, XRP, the cryptocurrency powering the decentralized XRP Ledger created by Ripple, has experienced a drop in value. Trading just below the $0.4550 mark, XRP witnessed a 2.5% decrease on Wednesday.
Despite this bearish trend, there are several factors that contribute to positive price forecasts for XRP. Recent advancements in the ongoing lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC), along with the cryptocurrency’s current technical outlook, have fostered an optimistic outlook.
XRP Price Forecast 2023: Lawsuit Resolution Nears, Positive Factors Bolster Optimism
The SEC filed a lawsuit against Ripple in December 2020, accusing the company of conducting an unregistered security sale of XRP tokens and raising over $1 billion in funds. Ripple contests the allegations, asserting that XRP is not a security. The fintech firm is on the verge of obtaining evidence that the SEC previously supported this position.
In a significant development, the judge presiding over the lawsuit rejected the SEC’s request to seal documents related to a speech given by former SEC Chairman Hinman in 2018. In this speech, Hinman stated that Bitcoin and Ethereum were not securities. Experts believe that internal SEC documents linked to this speech could reveal dissenting opinions within the SEC regarding whether cryptocurrencies like XRP should be classified as securities.
Prominent pro-XRP lawyer John Deaton, who is also a former federal prosecutor and the founder of CryptoLaw, has pointed out that “we know that some senior officials at the SEC discussed that there was a reasonable basis to conclude XRP was not a security.” Given this information, Ripple’s belief that XRP is not a security seems reasonable.
Consequently, the denial of the SEC’s motion to seal these documents was considered a major victory for Ripple, resulting in a significant boost for XRP at the time. XRP/USD successfully broke out of a downtrend that had been in effect since mid-April and confirmed its rebound from a retest of the 200-day moving average earlier this month.
Denial of SEC’s Motion and Technical Breakout: Ripple’s Victory and XRP’s Rebound
Although XRP is currently facing resistance in surpassing its 50-day moving average, the potential for a retest of yearly highs around the $58 level exists if positive news regarding the Ripple vs. SEC lawsuit continues. A favorable ruling for Ripple that does not classify XRP as security would greatly benefit the fintech company’s cross-border liquidity and payments business, leading to a substantial increase in demand for XRP.
Given these factors, there is optimism among investors and analysts that XRP Price Forecast could reach the $10 mark in 2023 if the lawsuit concludes favorably for Ripple. However, it is important to note that the outcome of the lawsuit remains uncertain, and any potential price forecast should be approached with caution.
As the lawsuit resolution nears, market participants eagerly await further developments that could significantly impact the future of XRP Price Forecast and the broader cryptocurrency market.