The recent appeal by the U.S. regulator in its case against Ripple could prompt a more cautious approach to XRP in the short term, according to a crypto analyst. Although the appeal does not challenge the ruling that XRP is not a security, it requests a review of the court’s decisions concerning Ripple’s XRP sales on exchanges and personal sales by CEO Brad Garlinghouse and co-founder Chris Larsen.
This ongoing legal uncertainty may contribute to increased price volatility for XRP, with potential fluctuations of nearly 50%, the analyst suggested.
“XRP’s price is likely to fluctuate between $0.50 and $0.80 by the end of the year, though this projection is highly contingent on regulatory developments and shifts in sentiment, particularly within the U.S. market,” stated Ryan Lee, chief analyst at Bitget, in an Oct. 18 report viewed by Cointelegraph.
The current hesitation in the market could lead to short-term price swings for XRP as participants wait for more definitive outcomes. XRP last surpassed the $0.80 level in March 2022, and its peak price this year was $0.71, also reached in March, according to TradingView data. As of now, XRP is trading at $0.55.
Ripple’s chief legal officer, Stuart Alderoty, has indicated that the appeals process may extend through July 2025.
Lee suggested that the final outcome could significantly influence XRP’s value. “A favorable ruling or increased international support for Ripple could lead to a notable price increase for XRP. On the other hand, an unfavorable outcome may push the price downward,” he noted.
The appeal adds to ‘regulatory ambiguity’
“The appeal introduces further regulatory ambiguity, particularly within the U.S. cryptocurrency sector. Investors may adopt a more cautious stance, as the final legal outcome remains uncertain,” Lee added.
On Oct. 16, Cointelegraph reported that Tim McCourt, senior managing director at CME Group, mentioned progress toward XRP exchange-traded funds (ETFs), citing the establishment of an XRP reference rate and a real-time index as the first steps in building the ecosystem.
