• XRP price is currently in the buy zone and analysts believe it’s a bargain to get in now.
• A lawsuit by the Securities and Exchange Commission (SEC) against Ripple and its top executives for allegedly selling XRP as an unregistered token is ongoing.
• Whale investors have been buying XRP since November, which could point to a major rally ahead of the next bull market.
Ripple’s XRP (XRP) is back in the buy zone and analysts have identified it as a bargain to get in at this time. This comes after a market-wide relief rally that saw assets like Solana (SOL), Polygon (MATIC) and Litecoin (LTC) post double-digit gains in less than a week. The international money transfer token is, however, still facing a legal burden in the form of a lawsuit by the Securities and Exchange Commission (SEC).
The SEC accuses Ripple and its top executives of selling XRP as an unregistered token, thus breaching the Securities Act. Both parties have filed their final submissions to the court and the world is now eagerly awaiting the court’s ruling. At the center of the case are the Hinman documents and emails that state Ethereum was not a security. According to legal experts like John Deaton, the lawsuit has a higher chance of going to trial than a settlement.
XRP price has been falling since September, when bulls tapped out at $0.56. Despite this, support at $0.30 has remained strong, even after being tested five times in the last six months. This same level could mark the XRP price bottom ahead of a major rally into the next bull market. This prediction is further supported by Santiment data, which reveals that large-volume investors, otherwise known as whales, have been buying XRP since November.
XRP was one of the top-performing cryptocurrencies in 2020, with a peak of more than $0.75. The token’s price has since been on a downward spiral, with the bulls unable to surpass the resistance at $0.30. Despite the current bearishness, XRP is still one of the most widely-used tokens in the crypto industry. The token is used as a medium of exchange in countries like Japan, India, and the United Kingdom, and is accepted by more than 400 companies worldwide.
If the court ruling goes in Ripple’s favor, there is a possibility of XRP price returning to its previous highs. On the other hand, if the ruling goes against the company, the XRP price could dip even further. Whichever way the ruling goes, it is clear that XRP is in a prime position to take advantage of any price movements, especially if the bulls can break the $0.30 resistance. With the whales already scooping up XRP, all eyes are now on Ripple as the wait continues for the court’s decision.