Decoding the Impact of RippleSEC Lawsuit RLUSD Launch on XRP Price Forecast for 2024
XRP’s price is expected to exhibit significant volatility in the range of $0.50 to $0.80 due to the ongoing uncertainty surrounding regulatory issues. Factors such as the U.S. regulator’s appeal in the Ripple case and the potential launch of an XRP ETF are likely to contribute to this volatility. Additionally, Ripple’s recent introduction of the RLUSD stablecoin could have a significant impact on XRP’s price, either positively or negatively.
According to Ryan Lee, the chief analyst at Bitget, it is predicted that XRP’s price will remain within the $0.50 to $0.80 range for the entirety of 2024. This projection takes into account the ongoing regulatory events and the unresolved legal case between Ripple and the U.S. Securities and Exchange Commission (SEC). As a result, many investors are adopting a cautious approach, opting to wait and observe the market before making any significant moves.
The SEC’s recent appeal in the Ripple case has further heightened market anxiety. While the appeal does not challenge the previous ruling that XRP is not a security, it does seek a review of the sales made on exchanges and personal sales by Ripple’s CEO Brad Garlinghouse and co-founder Chris Larsen. This legal uncertainty, particularly for U.S. participants, is expected to lead to further price fluctuations for XRP.
The duration of the legal briefing process is anticipated to extend until July 2025, as stated by Ripple’s Chief Legal Officer, Stuart Alderoty. Therefore, regulatory challenges are likely to continue influencing XRP’s price for the foreseeable future. The final ruling will play a crucial role in determining the direction of XRP’s value, as it has the potential to either boost or drag down the asset’s price.
Furthermore, there have been discussions about the possibility of launching an XRP exchange-traded fund (ETF). Tim McCourt, Senior Managing Director at CME Group, mentioned progress being made towards establishing an XRP ETF. While the necessary groundwork has been laid with a reference rate and real-time index, the full implementation of an ETF is still in progress.
The recent launch of the RLUSD stablecoin by Ripple also has the potential to influence XRP’s price. If XRP becomes deeply integrated into the stablecoin’s ecosystem and manages to overcome key resistance levels, it could drive the price up to $1 or even $2. However, if XRP’s involvement in RLUSD remains limited, its price might fall below $0.50.
The outlook provided by Ryan Lee emphasizes the significance of U.S. regulatory developments in shaping XRP’s price trajectory. A positive court ruling could lead to an increase in the asset’s value, while a negative outcome may cause it to decline. XRP’s price reached its highest point in March 2022, exceeding $0.80, and in 2023 it peaked at $0.71. Currently, it is trading at $0.55, experiencing a slight 0.42% increase since October 18.
Considering the lack of legal clarity, investors should anticipate continued price fluctuations and exercise caution when making investment decisions. The XRP market remains unpredictable, and only time will reveal its ultimate outcome.