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XRP price has key catalysts: here’s why Ripple may crash 50%

XRP price has lost the momentum it had late last year. Ripple has remained in a wide range between the crucial support at $2 and the resistance point at $3.40 this year. It is not moving in a well-defined trend and has formed the risky head and shoulders chart pattern. This article looks at some of the top catalysts that may affect the XRP price in the near term.

Ripple vs. SEC case

The first major catalyst that may push the XRP price higher is a potential settlement between Ripple Labs and the Securities and Exchange Commission (SEC).

This settlement stems from a case that started in 2020 when the SEC accused Ripple Labs of crimes stemming from it 2013 token sale. The agency sought a $2 billion fine from the company.

In a ruling, a judge said that XRP was not a security, which was a positive thing for Ripple Labs. The judge, however, noted that the capital raise from investors was illegal and fined the company $250 million, which the SEC appealed.

Therefore, there are signs that the SEC, under Donald Trump, will end the lawsuit. Besides, it has already ended lawsuits against other large players in the crypto industry, like Coinbase, Kraken, Gemini, OpenSea, and Uniswap.

The end of this case would be a good thing for XRP price because it would let Ripple Labs do deals with other financial services companies like banks and money transfer firms. Many of these firms have been afraid of dealing with Ripple because of its baggage.