While there is a lot of confusion in the market regarding XRP and Ripple, there is a question that is puzzling XRP owners: “Should I buy / sell / keep XRP?”. We will examine this question in detail.
As is known, everything started with the SEC case. The SEC’s lawsuit against Ripple and its two executives (Chris Larsen and Brad Garlinghouse) is currently the most popular issue in Ripplethe industry.
As the news spread, the price of XRP started to decrease. XRP lost its position as the third largest cryptocurrency in the world in terms of market capitalization. The subject of the lawsuit against Ripple is that the SEC sees XRP as a security, and what Ripple has done since 2013 is “selling unregistered securities”, a punishable crime. Without going into details, we’ll look at a few possibilities for what might happen in the coming period.
If SEC Wins
This means that XRP is an unregistered security, and most exchanges cause the price decline to continue. Ripple is fined heavily and Garlinghouse and Larsen are likely jailed. However, this is unlikely at the moment, and there may be a solution that will result in those individuals paying more fines. Besides, XRP loses its value substantially; Ripple’s partners will likely stop using their XRP-leveraging ODL to transfer funds and provide liquidity.
If Ripple Wins
This causes the price of XRP to rebound and the normal process can be resumed. We can witness a wave of tweets saying “I told you” the price will initially cause FOMO in the XRP army and a second surge. In other words, those who think that they missed the opportunity will take the stage and then try to catch up.
It is difficult to say who will win for the moment. But even now, companies related to Ripple or XRP could be in trouble. Bitwise and many such companies are already moving away from XRP. Depending on where the case is headed, users / companies can either reheat to XRP or go away forever.
Depending on the litigation process, the price may rise or fall. In the short term, if things get worse for Ripple or XRP, we can expect XRP to hit a 2020 low.
Latest Price in Price
Since touching the all-time high of $ 3.84 nearly three years ago, XRP’s value has declined, while its volatility has increased significantly in recent months. In the last few days, Ripple’s price has lost about 65% of its value, reaching a 5-month low of $ 0.2098.
In November, the price of XRP rose significantly after years of struggle, but its price dropped once again a few days ago after Ripple’s CEO said the SEC would file a complaint against the company. However, XRP buyers have managed to recover some of the losses in the past two days, forcing XRP to trade above the $ 0.35 level. A one-day close at $ 0.3550, ie above 100-DMA, may open the way for a return to $ 0.43.