Amid a broader pullback in the cryptocurrency market on Wednesday as hotter-than-expected UK inflation data triggers jitters about sticky inflation across major global economies that might prevent central bank from being able to cut interest rates in the coming quarters, XRP has been falling.
The cryptocurrency, which powers the decentralized, payments/liquidity-focused XRP Ledger which was created by US fintech firm Ripple back in 2012, was last trading just to the south of the $0.4550 level, having dipped close to 2.5% on the day.
Despite the bearish price action being witnessed on Wednesday, recent developments in the XRP vs Ripple lawsuit, as well as the cryptocurrency’s current technical set-up, mean that price forecasts remain upbeat.
XRP Price Forecast as Lawsuit Resolution Nears
The SEC sued Ripple back in December 2020 over raising more than $1 billion in funds via an unregistered security sale of XRP tokens.
Ripple denies that XRP is a security and the US fintech firm is about to secure evidence that the SEC previously used to agree with this argument.
The judge presiding over the lawsuit last week denied an SEC motion to seal documents relating to a speech made by former SEC Chairman Hinman.
In that speech, made back in 2018, Hinman said neither Bitcoin nor Ethereum were securities.
And experts think that internal SEC documents relating to this speech are likely to show dissenting opinions within the SEC regarding whether other cryptocurrencies like XRP are also securities.
Pro-XRP lawyer John Deaton, a former federal prosecutor and the founder of CryptoLaw, remarked that “we know that some senior officials at the SEC discussed that there was a reasonable basis to conclude XRP was not a security”.
“If SEC staff believed XRP was not a security, it’s reasonable for Ripple to believe the same.”
Hence, the denial of the SEC’s motion to seal these documents was seen as a big win for Ripple and gave XRP a substantial boost at the time.
Indeed, XRP/USD was able to break above a downtrend that had been in play since mid-April and confirm its bounce from a retest of the 200DMA earlier this month.
While XRP is for now struggling to get above its 50DMA, a retest of annual highs in the $58s is on the cards if news regarding the Ripple vs SEC lawsuit remains positive.
If Ripple is able to secure a favorable ruling with the SEC that doesn’t label XRP a security, this should be a boon for the US fintech company’s cross-border liquidity/payments business, which could substantially boost XRP demand.
Can XRP Hit $10 in 2023?
Whilst a favorable ruling or outcome to the SEC lawsuit would certainly be a huge positive catalyst for XRP, and would very likely see the cryptocurrency become one of the best performers in the crypto space this year, more than 10x gains to hit $10 per token this year might be an overly optimistic forecast.
That’s because the bull market in the broader crypto markets appears to still be in its infancy.
Yes, macro conditions are set to improve this year, with the Fed’s rate hiking cycle looking likely to already be over.
But cryptocurrencies like Ripple may have to wait a few years and for further fiat currency debasement (via new rate-cutting cycles and liquidity injections) to post 10x gains from current levels.
XRP (XRP) and Blue-chip Crypto Alternatives to Consider
While blue-chip cryptocurrencies may continue to perform well in the coming months and years, investors should nonetheless always be on the lookout to diversify their crypto holdings.
One high-risk-high-reward investment strategy that some investors might want to consider is getting involved in crypto presales.
This is where investors buy the tokens of up-start crypto projects to help fund their development.
These tokens are nearly always sold very cheap and there is a long history of presales delivering huge exponential gains to early investors.
Many of these projects have fantastic teams behind them and a great vision to deliver a revolutionary crypto application/platform.
If an investor can identify such projects, the risk/reward of their presale investment is very good.
The team at Cryptonews spends a lot of time combing through presale projects to help investors out.
Here is a list of 15 of what the project deems as the best crypto presales of 2023.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
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