Cryptocurrency Ripple (XRP) has been down by more than 10% over the last week, trading at $0.58 per token. This is far below the short-lived peaks near $2 in 2021 and $3 in 2018. Despite positive developments in the cryptocurrency’s long-running courtroom drama and a general thawing of the broader crypto market’s chill, Ripple’s crypto winter is still in full force.
Is it time to take advantage of the situation and buy some tokens on the cheap? Or, is Ripple headed for darker days, and it’s best to stay away? Let’s look at the evidence.
First and foremost, XRP investors are looking for a favorable outcome in the lawsuit filed by the US Securities and Exchange Commission (SEC) nearly three years ago. The SEC argues that Ripple Labs and its executives raised $1.3 billion in an unregistered offering of securities. This suggests that XRP should be treated like a stock or a bond, with all the safeguards and requirements that come with that classification.
Judge Analisa Torres ruled that selling XRP tokens on a public crypto exchange did not qualify as an offering of securities, and more akin to trading foreign currencies. This verdict, if it holds up to reviews and appeals, could set a precedent that puts many cryptocurrencies out of the SEC’s jurisdiction. In particular, a lighter regulatory hand would be great news for the Ripple network and XRP.
The crypto market is also dreaming of widespread support from institutional investors. If traditional banks and investment firms pump billions or trillions of dollars into blockchain assets over the next few years, most of the larger coins should skyrocket. XRP, with the fifth-largest total market value of all digital coins, is one of them.
In September, Shannon Thorpe, a business support manager for Wells Fargo, said that Ripple’s token could be worth more than $500 in a next-generation ecosystem for global payments. This shows that banking insiders of any description see upside in the crypto sector.
However, there are potential risks that could go wrong for Ripple Labs, its payment network, and the XRP token. For example, the lawsuit could still take an SEC-friendly turn, or other blockchain solutions might steal Ripple’s crown. Plus, there is always the possibility of a security breach.
Nevertheless, none of these threats seem very likely to materialize in the short term. Judge Torres’ verdict leaves little room for appeals-court upsets, and Ripple’s security is arguably tighter than most cryptocurrencies’.
So, while there are no guarantees, Ripple’s XRP token seems poised for robust returns from the current price level. Targeting Ms. Thorpe’s suggested target of $500 per token by 2027 may be unrealistic, but a much smaller gain can still deliver market-stomping gains. Ergo, it is worth considering buying a few Ripple tokens while they’re cheap.