- The SEC has acknowledged that speculative trading plays a crucial role in enhancing XRP’s utility and price.
- XRP’s future is looking brighter as the SEC validates the importance of speculative trading.
- XRP’s price currently trades at $0.5887, with a 3% decrease in total trading volume.
The result of the legal battle between the SEC and Ripple in Q3 2024 has birthed a new narrative. It has revealed an unexpected stance from the SEC.
A document was shared by Anderson, an asset researcher, via a tweet on X. The US SEC seems to have acknowledged before that speculation plays an essential role in enhancing XRP’s utility and price.
The document originated from Ripple’s lawsuit. This lawsuit consists of an email sent by Ripple CEO Brad Garlinghouse on April 9th, 2017, to his board members.
In that email, the CEO highlighted the significant increase they witnessed in that past period. He mentioned a dramatic spike in the XRP price and market activity. This was a major development for the company in the past quarter.
Even the SEC understands the important role of SPECULATORS and speculative volume in starting up the #XRP flywheel, so that XRP can be used in Ripple's products.
— Anders 🏁🌏 (@X__Anderson) September 23, 2024
So, if there will be a big speculative rise in the price of XRP, along with a natural rise in trading volume, this… pic.twitter.com/rsLL6tuQX5
The SEC noted this, recognizing that speculative trading brings essential liquidity to the XRP ecosystem. It is extremely sensitive and plays a vital role in Ripple’s products.
This insight indicated that the SEC understands that buying and trading XRP is not solely for transactional purposes. However, it is also for potential profit.
While speculation is often viewed as risky, it is essential for building the liquidity Ripple needs to support its payment solutions. This includes the On-Demand Liquidity (ODL) product.
Reaction by Its Community
Anderson’s tweet has sparked significant discussion within the XRP community. Surprisingly, many in the market see this as a future validation for the XRP price. Speculative trading is essential for XRP’s liquidity, suggesting that the token’s value might be more robust than previously believed.
Despite this, some community members are worried about Ripple’s upcoming RLUSD stablecoin. They are stressing about whether it might eventually replace XRP in Ripple’s payment system.
Despite that, Ripple has addressed these concerns. Affirming this, XRP continues to play a crucial role in its cross-border payment solutions. Brad Garlinghouse’s remarks indicated that as speculation drives XRP price movements, it will remain integral to the ecosystem.
Is XRP Price A Real Elephant Or Just A Paper Tiger?
Currently, the XRP price traded at $0.5887, with a 3% decrease in total trading volume. It ranked 7th in market cap, amounting to $33.303 Billion, with a spot trading volume of $1.038 Billion.
Despite multiple setbacks, XRP has maintained its support trendline since 2017. This underscored its fundamental strength and position among the top 10 cryptocurrencies globally.
During the period it was affected by legal issues, XRP’s performance was lackluster. However, although opinions differ, analysts now predict significant price movement for XRP.
According to JACKIS on X, XRP has been in a prolonged sideways trading pattern for over seven years. It seems that, most likely, it may soon experience a breakdown due to weakening support levels.
On the other hand, analyst Javon Mark believes this consolidation phase could lead to a substantial price surge. He suggested that if XRP breaks out of its current range, the possibility is higher that it could see significant gains.
The analyst has been projecting a potential XRP price target of $263. It would be an astonishing increase of over 42,000% from its current price. However, such optimistic projections should be approached with caution.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
