Updated on January 9, 2023 12:51 PM
Ripple (XRP) could go beyond everyone's expectations if it could maintain the current balance. Recently, Ripple got the perfect climate to grow more.
Ripple (XRP), which finally crossed the $0.50 mark this week following a selloff, is up 6% in the 24-hour charts this week as the price has been recovering well.
The price of Ripple (XRP) has dropped by 55% over the same time last year. The price is being dragged down by the overall crypto market's weakness and its legal conflict with the US Securities and Exchange Commission.
However, Trading optimism in Ripple's likely legal victory over the US Securities and Exchange Commission has led to significant price rises for XRP over the past month (SEC).
For instance, the price of XRP increased by 25% thirty days after Ripple and the SEC requested a prompt decision on whether XRP sales were in compliance with U.S. securities regulations. Bitcoin and Ether, in contrast, have experienced 4% and 11% declines over the same time span, respectively.
As the XRP price managed to surpass the 30 cent mark, interest in Ripple's legal case began to soar. Even when news of the SEC action was moving in the right direction, the token was able to increase by 70%. Following the buzz, XRP prices fell once more, dropping more than 11% over the last week.
Another aspect which could add into the Ripples price jump is the sidechain ledger testing which Ripple is going to conduct recently.
The program that powers smart contracts on Ethereum is called the Ethereum Virtual Machine (EVM). On the company's development network, where developers can test implementations before they go live on the main network, Ripple announced that an EVM-compatible sidechain, a blockchain that operates concurrently with the main XRPL blockchain, is now operational.
The work that developers have already put into creating Ethereum smart contracts may be used in the totally different Ripple ecosystem, which might be advantageous for Ripple and XRPL.
The announcement made on Monday just marks the beginning of a three-part procedure. Early in 2023, the second phase will go online, making it possible for anyone to join the EVM sidechain and making it permissionless. The third stage, when Ripple will completely install the software, is planned for the second quarter.
The SEC charged Ripple and its top executives with selling unregistered securities in a 2020 lawsuit. The founder of CryptoLaw, John Deaton, claims that investors have lost $15 billion as a result of the SEC's activities against XRP.
The likelihood that Ripple will prevail over the SEC is the source of the recent optimism for XRP.
Ripple’s CEO thrashingly replied to the SEC that, “The SEC has clearly forgotten that the government works for the people.”
Market sentiments as in the chart of 24 Hr is showing neutral i.e the buyers and sellers both are equally strong. While the moving average of XRP is also in neutral Oscillators are pointing towards the “Sell” which shows bears are stronger than bulls.
Due to the legal dispute and the overall unfavorable dynamics of the cryptocurrency market, the events of 2021 and the beginning of 2022 have proved that the XRP pair still exhibits significant speculative characteristics. The XRP pair still generates volatility and volume, though. The XRP showed that it can treble its capacity before losing nearly everything. For traders who are aggressive, it's a good point.