The XRP cryptocurrency, issued by Ripple Labs, has been at a crossroads for several years, showing no clear signs of where it is headed. This situation raises questions among investors and analysts about the future of the digital asset.
For the past three years, XRP's price has remained stuck between the $0.2 and $0.9 ranges, remaining 84% away from its all-time high reached in January 2018, when it reached $3.84.
Last week it registered a 40% increase and some analysts and traders are considering the possibility of the digital currency entering a bullish cycle. At the same time, others remain skeptical.
The following CoinGecko chart shows the historical price behavior of this cryptocurrency since its launch:
Historical price chart of XRP. Source: CoinGecko.
As you can see, the XRP cryptocurrency has yet to take off, despite being the sixth largest with a market capitalization of around $32 billion. While Bitcoin and other altcoins have reached all-time highs in 2021 and 2024, XRP remains in a constant sideways movement.
A cryptocurrency market analyst, known on social media as “Crypto Michael,” believes that XRP is approaching a “historic breakout” and said: “I have never seen a 7-year bullish pennant,”.
A bullish pennant is a technical chart pattern characterized by an extended period of consolidation followed by a “bullish breakout.”
Another industry analyst, known on X as Amonyx, believes that “XRP is heading towards a new ATH (all-time high) in this cycle.” Despite these opinions, the cryptocurrency does not give —at least, for now— clear and irrefutable signs of such a movement.
Legal issues hold back XRP
One of the biggest hurdles XRP has faced in the market comes from the legal clashes between Ripple Labs and the United States Securities and Exchange Commission (SEC).
It all started in 2020, when the company was accused of selling XRP, considered by the SEC to be an unregistered security and therefore subject to regulation.
Although Judge Analisa Torres dismissed the lawsuit in 2023, XRP has failed to recover to pre-litigation levels.
After three and a half years, the litigation moved beyond the trial phase in April 2024 and there is still no resolution. Following Torres’ decision, Judge Sarah Netburn granted a motion by the SEC for Ripple Labs to disclose its financial statements between 2022 and 2023, including contracts and other requested documents.
This would allow the US regulator to establish any sanctions against the XRP issuing company.
In addition, the SEC has requested a $2 billion fine to further pressure Ripple for violating US securities laws.
The legal dispute was expected to come to an end on July 18, when the two sides were to meet behind closed doors, but the SEC canceled the meeting, it said on its website, without specifying the reasons.
Ripple CEO expects a quick resolution
In this regard, Ripple CEO Brad Garlinghouse, during an interview with Bloomberg, noted that the meeting was rescheduled for July 25, the date on which the company's long legal battle with the US regulator could end.
Garlinghouse was unable to comment directly on the SEC settlement, but said he expects “a resolution very soon,” though he cannot predict exactly when the judge will make his decision. He also noted that the only thing still in litigation concerns sales of XRP to institutional investors.
Brad Garlinghouse, CEO of Ripple. Source: Wikipedia.
Ultimately, XRP continues to face significant challenges both in the market and in the legal arena, which has prevented its takeoff despite some recent increases in its value. However, a stablecoin could be the company's lifeline.
Analyst Kevin Paffrath suggests that a stablecoin that Ripple plans to launch in late 2024 is good news that will help the company and XRP, in fact, he said that it “changes everything.” This is because with this initiative, it is finally disengaging itself from the weight of regulators and lawsuits, he added.
For Paffrath, the launch of a stablecoin represents “an opportunity for the company to really succeed in the future.”
