- XRP is currently trading just to the south of the $0.4550 level, having dipped close to 2.5% on the day.
- The SEC sued Ripple back in December 2020 over raising more than $1 billion in funds via an unregistered security sale of XRP tokens.
- If Ripple is able to secure a favorable ruling with the SEC that doesn’t label XRP a security, this should be bullish for price action.
Current Price Action
Amid a broader pullback in the cryptocurrency market on Wednesday as hotter-than-expected UK inflation data triggers jitters about sticky inflation across major global economies that might prevent central bank from being able to cut interest rates in the coming quarters, XRP has been falling. The cryptocurrency was last trading just to the south of the $0.4550 level, having dipped close to 2.5% on the day.
Ripple vs SEC Lawsuit
The SEC sued Ripple back in December 2020 over raising more than $1 billion in funds via an unregistered security sale of XRP tokens. Ripple denies that XRP is a security and is about to secure evidence that proves this argument. Last week, the judge presiding over the lawsuit denied an SEC motion to seal documents relating to a speech made by former SEC Chairman Hinman which said neither Bitcoin nor Ethereum were securities. Experts think internal documents related to this speech are likely to show dissenting opinions within the SEC regarding whether other cryptocurrencies like XRP are also securities.
Despite bearish price action being witnessed on Wednesday, recent developments in regards to Ripple’s lawsuit mean that price forecasts remain upbeat for XRP if it secures a favorable ruling with no classification as a security fromtheSEC. If so, this could leadtoa retest of annual highs around $58s and beyond if momentum remains strong enough throughout 2023 and beyond.