Key Insights:
- SEC explores XRP’s reclassification as a commodity
- Analyst sees XRP breaking resistance, eyes $60 target
- Whale wallets remain inactive despite bullish price action
The U.S. Securities and Exchange Commission is considering classifying XRP as a commodity in its ongoing settlement discussions with Ripple Labs. The SEC initiated its case against Ripple Labs in 2020 regarding a $1.3 billion unregistered XRP’s sale, but the court ruled in 2023 that XRP does not inherently qualify as a security during secondary market transactions.
SEC reportedly bases its evaluation of XRP on Ethereum’s regulatory status, as Ethereum started as an ICO before becoming a commodity. Ripple maintains that XRP’s distribution method stands apart because its tokens were pre-mined and not used to fund network development.
Ripple continues negotiations with the SEC to modify both its $125 million fine and the restrictions placed on institutional XRP sales.
The SEC has withdrawn case actions against Coinbase, Robinhood and Uniswap because of new regulatory changes that demonstrate a softer stance on crypto regulation. A reclassification of XRP’s may affect future regulatory decisions while creating possibilities for financial products such as spot XRP exchange-traded funds.
Furthermore, the XRP ETF filing from Franklin Templeton demonstrates increasing institutional involvement, while investors watch for a definitive settlement that could provide better transparency to the crypto market.
XRP Targets $60 as Price Breaks Key Resistance
Crypto analyst Steph Is Crypto shows a bullish breakout pattern in XRP’s price chart, which points to a potential $60 price target.
The historical resistance level at $3.00 has been overcome as the price follows a pattern from its previous bull cycle. XRP’s demonstrated the same price behavior in 2017 by staying stable for an extended time before reaching new all-time highs.
Whales Remain Unusually Quiet Amid Price Action
Despite the bullish outlook, on-chain data from Santiment shows XRP whales have displayed an unusual lack of movement. Wallets containing 100 million to 1 billion XRP tokens have maintained complete inactivity during the past week.
Large holders typically initiate major price movements through their buying and selling activities, yet these wallets have shown no significant movement during this period.
Institutional investors seem to hold back from major XRP investments, as they may be waiting for more clarity about the market direction. In past cycles, whale accumulation spikes typically led to substantial price increases.
If large holders return to the market with aggressive buying activity, it would strengthen the bullish outlook and potentially drive prices upward.
What’s Next for XRP?
With the SEC settlement discussions and the possibility of XRP being classified as a commodity, it could transform its regulatory situation. A positive decision would strengthen XRP’s legitimacy and draw additional institutional investors to the network.
This would also enhance the prospects for an XRP ETF approval, which would deepen XRP’s integration into traditional financial markets.
XRP price shows promising technical indicators for price growth, yet its sustained breakout depends on market conditions remaining favorable. The $60 target may become achievable when whale activity increases alongside positive crypto market sentiment.
Disclaimer
This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
