Ripple Price Analysis: XRP Eyes Critical $0.7 Support Following 14% Weekly Drop

When people think of Ripple, they may immediately think of the XRP cryptocurrency. However, Ripple’s business, technology, and ecosystem are not completely synonymous with XRP, although Ripple does harness the XRP coin for certain uses within its ecosystem.
So what is Ripple trying to solve? The progression of technology has significantly changed the speed and ease at which information moves globally. The movement of money, however, has remained comparatively more cumbersome than, say, the transition from letters to email.
Cryptocurrency has provided significant improvements in the area of value transfer, but crypto, in a general and broad sense, lacks levels of compatibility with traditional money systems. By harnessing blockchain technology, Ripple aims to help quicken and smoothen the arena of money transfer.
It is important to note that although the Ripple company harnesses the XRP Ledger and XRP coin in various capacities, the XRP Ledger and XRP coin are independent of the Ripple company, according to ample statements and material issued by the company itself over the years of operating.

The Legal Challenge

Even though the number of trading services for XRP tokens is quite limited these days, the digital currency still boasts the eighth-largest cryptocurrency market cap at $37.7 billion. It’s only No. 16 in terms of daily trading volumes, lagging far behind leaders like Tether and Bitcoin but nearly tying the coins ranked around the eighth position.
In other words, XRP is still an actively traded cryptocurrency, in spite of many leading broker services washing their hands of the potential legal blowback that could result if Ripple is found guilty of securities trading regulations.
That fact speaks volumes about the demand for a swift and safe border-crossing payments service with minimal transaction fees. RippleNet offers all of these features, alongside compatibility with many different currencies — both digital and fiat.
The SEC sees XRP’s market position in a different light. The lawsuit alleges that the token should be subject to the same rules and regulations as traditional securities, along the lines of stocks, bonds, or options contracts. Ripple’s lawyers and executives are trying to explain to the court that those rules might apply to a value store like Bitcoin but not to XRP. This token is arguably a closer match for old-school currencies such as the euro, the dollar, or the yen. As the functional lifeblood of a global payment network, XRP should be treated more like the decentralized programming network Ethereum, which the SEC is happy to leave under the same banner as your favorite fiat currencies.

This Process Will Take Time

The outcome of the SEC lawsuit will either crush XRP’s real-world value with draconian regulations or allow the currency to flow through American cryptocurrency trading platforms. Any shades of gray in between these extremes will be a win for Ripple in all practical matters. Don’t forget that this case likely will set the tone for the regulation of other cryptocurrencies and blockchain networks.
The legal action started more than a year ago and the case is still just in the discovery phase, where the two sides are collecting evidence in support of their claims. It could take years before we have a final outcome here, and the wait will be long indeed if the parties take full advantage of their appeal options.

XRP Can Reach $5, but Not Quickly

Legal challenges are never easy to predict, but the cryptocurrency market as a whole would benefit from a final judgment leaning in Ripple’s direction. That pressure may not mean much when the adversary is a division of the U.S. government, but Ripple and XRP will at least have the benefit of top-quality legal advice and community support along the way. There is too much at stake to leave the cryptocurrency alone on the front line.
That’s why a full-fledged SEC victory would come as a surprise to me. It’s a possible result in my eyes, but not a probable one. XRP should absolutely rise above $5 if I’m right.
However, it won’t get there quickly. The chances of a final verdict in 2022 are slim to none, so XRP investors should hunker down for a multi-year ride to that lofty peak. Then again, patience is the best of all virtues for a serious investor, since unbreakable patience plus robust long-term growth equals wealth-building returns.
All things considered, I don’t mind holding on to my modest collection of XRP tokens for the next several years as this legal drama plays out.

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