XRP is down, but in a context where bad news accumulates : Fairly large general decline in the cryptocurrency market on Wednesday, higher than expected UK inflation figures, which trigger concerns about inflation in the main world economies, questions about the bank’s capacity power to reduce interest rates in the coming quarters.
The cryptocurrency, which powers the decentralized payments and liquidity-focused XRP Ledger created by US fintech firm Ripple in 2012, was trading just below the $0.4550 level, having fallen nearly 2.5% on the day.
Despite the drop in prices observed on Wednesday, the recent developments in XRP’s lawsuit against Rippleas well as the current technical configuration of the cryptocurrency, give price forecasts which remain optimistic.
XRP Price Predictions as Lawsuit Nears Resolution
The SEC sued Ripple in December 2020 for raising over $1 billion in funds via an XRP token sale, not recorded as titles.
Ripple denies that XRP is a security and the US fintech company is set to obtain evidence that the SEC has previously used to accept this argument.
The judge presiding over the trial last week denied a motion by the SEC to seal documents relating to a speech given by former SEC Chairman Hinman.
In that speech, delivered in 2018, Hinman said that neither Bitcoin nor Ethereum were securities.
And experts believe that internal SEC documents relating to this speech are likely to show dissenting opinions within the SEC as to whether other cryptocurrencies like XRP are also securities.
Pro-XRP lawyer John Deaton, former federal prosecutor and founder of CryptoLaw, remarked that “we know that some senior officials at the SEC have discussed that there was a reasonable basis to conclude that XRP was not not a title”.
“If SEC staff thought XRP was not a security, it’s reasonable for Ripple to think the same.”
As a result, denial of SEC petition aimed at making these documents inaccessible considered a big win for Ripple and gave XRP a substantial boost.
In effect, the XRP/USD pair was able to break an ongoing downtrend since mid-April and confirm its rebound after retesting the 200-day moving average earlier this month.
While XRP is currently struggling to break above its 50-day moving average, a retest of the yearly highs in the $58 range is expected if news regarding Ripple’s lawsuit against the SEC remains positive.
If Ripple is able to obtain a favorable ruling from the SEC which doesn’t qualify XRP as a headline, this should be a boon to the U.S. fintech company’s cross-border liquidity/payments business, which could significantly boost demand for XRP.
Can XRP reach $10 in 2023?
While a favorable SEC lawsuit ruling or outcome would certainly be a huge positive catalyst for XRP, and would most likely see the cryptocurrency become one of the top performers in the crypto market this year, reach $10 per token this yearwith what that supposes as rises, might be an overly optimistic forecast.
The reason is that the uptrend in the broader cryptocurrency market appears to still be in its infancy.
Yes, macroeconomic conditions should improve this year, with the Fed’s rate hike cycle likely already looking over.
But, cryptocurrencies like Ripple may have to wait a few years and further depreciation of fiat currency (via further rounds of rate cuts and liquidity injections) to post 10x gains from current levels.
Launchpad XYZ: an interesting alternative to XRP
Although top-notch cryptocurrencies may continue to perform well in the months and years to come, however, investors should always be on the lookout to diversify their crypto holdings.
A high-risk, high-reward investment strategy that some investors may consider is to get involved in crypto presales. There is a long history of pre-sales offering huge exponential gains to early investors.
This is the case of $LPX which is the native token of the future platform which could explode soon ! In effect, Launchpad XYZ is a project that aims to facilitate investment in cryptos, with a centralization of services and information.
Launchpad XYZ will thus have its own decentralized exchange, its crypto wallet service, and even an internal system for rating the quality of pre-sales or future Web3 games that come out.
In particular, the $LPX token can be staked and will give users reduced transaction fees on the platform, as well as privileged access to private presales.
$LPX is therefore positioned as one of the best altcoin projects of 2023, offering very good earnings prospects. LPX tokens are now available for presale purchase.
Currently, early investors will only pay $0.035 per token. This increases throughout the pre-sale, so early investors receive the lowest price. The LPX token will be listed on the Launchpad XYZ exchange at $0.07 after the presale, a 100% upside compared to current prices. So, if you are interested in the project, do not hesitate to learn more about Launchpad XYZ by visiting the official site.
As always, remember to do your due diligence before investing and carefully review proposed investments, weighing the risk of loss.