XRP: 60 days for the agreement between Ripple and the SEC
Yesterday, the price of XRP for a moment risked falling below $2. It is likely that behind the decline there was also the involvement of the SEC, as well as that of the Fed. “`html The drop in the price of XRP “` In recent days, the price of XRP was above $2.1, and it was heading towards $2.2. Sunday had managed to surpass this threshold, and in the following days it had remained around $2.18. Yesterday, however, even before Powell started speaking, it had started to fall, so much so that it fell below $2.1. During Powell‘s speech, it risked dropping even below 2$, but later it recovered a bit. Now, for example, it has returned to 2.1$. Note that it has been seven days since it has not fallen below $2, even though a month ago it was even above $2.5. The period of lateralization The fact is that the 2$ mark was surpassed at the beginning of December 2024, so it has now been more than four and a half months that it oscillates between 2$ and 3$, with few exceptions of short duration and limited amplitude. Therefore, the movements of the last few days are nothing more than volatility within a clear phase of lateralization, characterized by a certain stability seasoned precisely with a certain degree of volatility. It should not be forgotten that before Trump’s electoral victory it was at only $0.5, and that $2 had not been seen since January 2018, given that during the last great speculative bull it barely surpassed $1.5. In the medium/long term, the price of XRP tends to move sideways, but if in past years it had moved sideways first around $0.3, and then around $0.5, the current level of sideways movement is enormously higher. What happened yesterday Until the day before yesterday, the price of XRP was consistently above $2.1 for a few days, but yesterday at some point this kind of support no longer held. It is possible that the decline was triggered by the news coming from the SEC. In fact, although the SEC’s case against Ripple is effectively over, there is still one last step, namely the agreement between the parties. Yesterday it was discovered that the issue is now at the end of the line, but that it will hardly be resolved before 60 days. The joint request for suspension of the appeal has been accepted, and the SEC has been ordered to submit a final report on the status of the procedure. However, the SEC has been given 60 days. It is possible that the reason for such a postponement is due to the fact that in the coming weeks the new president of the agency, Paul Atkins will take office, and therefore time has been given to the agency to present the final report after the new president’s inauguration. The fact is that the markets had already widely priced in the definitive closure of the case, and this further postponement was not well received. Theoretically, it is still possible that there may be some hiccup for the appointment of Atkins, and this could lead to further delays in the final closure of the SEC case against Ripple. The forecasts on XRP By now, however, as demonstrated by the very contained volatility of yesterday, these are dynamics that have very little impact on the price of XRP. Now the key is to understand how much longer this phase of lateralization will continue, and given that in the past some of these phases have lasted for years, it cannot be ruled out that its end may still be far away. On the other hand, XRP is holding up quite well in the medium term, unlike many other altcoin. For example: BTC is -9% since the beginning of the year, and +2% compared to a month ago XRP is at -1% compared to the beginning of the year, and at -7% compared to thirty days ago ETH is at -52% since the beginning of the year, and at -15% from a month ago SOL is at -30% compared to the beginning of the year, but at +7% compared to a month agoAmong the top 10 cryptocurrencies by market capitalization, only the stablecoins lose less than XRP since the beginning of the year, while in the top 25 to the stablecoins is added only LEO with +4%. In light of this, the most likely scenario seems to be that the period of lateralization for XRP may continue for quite a while longer.