The cryptocurrency XRP, which powers the XRP Ledger, experienced a pump to fresh multi-month highs in the $0.565 area before reversing lower. Supporting this spike was the release of documents by the US Securities and Exchange Commission (SEC), which highlighted the controversial speech by the agency’s former director of its Division of Corporation Finance, William Hinman. In the speech, Hinman stated that he did not believe Ether, another cryptocurrency, should be regulated as a security.
These documents reveal the SEC’s deliberations over the speech and appear to strengthen Ripple’s argument in its ongoing lawsuit with the SEC. Back in December 2020, the SEC accused Ripple of issuing XRP as an unregistered security, leading to a lengthy legal battle. Ripple’s Chief Legal Officer, Stuart Alderoty, argues that the documents prove Hinman’s speech contained baseless analysis and shouldn’t be considered when deciding on whether a token is a security or not.
As Ripple’s momentum in the lawsuit against the SEC continues to build, many crypto enthusiasts are hoping XRP’s price dips will still be seen as buying opportunities. A retest of yearly highs in the $0.5850 area seems likely in the next few weeks if broader crypto market sentiment remains positive. However, this remains uncertain as Bitcoin continues to hover just below the $26,000 level and a retest of its 200DMA under $24,000 could be imminent due to ongoing market downtrends.
Some crypto enthusiasts have even ventured to predict that XRP could reach $10 by 2023. A price point of $10 would represent a 20x gain, pushing XRP’s market cap to around $530 billion. While reaching this level this year appears overly optimistic, it is a potential long-term target if Ripple successfully navigates its lawsuit with the SEC.
Increased adoption of cryptocurrencies could lead to Bitcoin matching gold’s market cap of over $11 trillion. If this occurs, it could pave the way for XRP to achieve a market cap of half a trillion dollars. Ripple’s rapidly growing liquidity and payments business directly bolster the demand for XRP, reinforcing its long-term potential.
For investors looking to diversify their crypto holdings, one high-risk-high-reward strategy might be participating in crypto presales. These presales provide access to tokens of up-and-coming crypto projects at a low price, and have historically delivered significant gains to early investors. Many of these projects boast strong teams and revolutionary crypto applications or platforms, demonstrating the potential for substantial risk/reward investment outcomes.
Source: Cryptonews
