XRP Price Analysis amid SEC Battle: Stuck at $0.50

Key Points:

• XRP is stuck in a narrow trading range around the $0.50 area. 
• An attorney has demonstrated why XRP is not a security. 
• Ripple’s CTO has provided some XRP price analysis.  

XRP has been stuck in a narrow trading range between $0.50 and $0.51 of late. The No. 6 crypto continues to test its previous resistance, which is now strong support, for days. Many traders believe XRP could hang around the $0.50 area until Ripple’s prolonged legal battle with the U.S. SEC is resolved. 

Attorney Sticks Up for Ripple

As the legal battle between Ripple and regulators lingers, another attorney has come out swinging in defense of the blockchain company. Jeremy Hogan, a partner at Hogan & Hogan, published a Twitter thread showing why XRP is not a security as the SEC claims. 

Hogan argues that the only way that XRP could legally fit the bill as a security is under the definition of an investment contract, which is the framework for assets like stocks and bonds. But the SEC has not proven any such contract of investment exists, instead focusing on the use of a purchase agreement and hoping that it will fly with the judge. 

Hogan gives the example of buying gold, describing a transaction as a “simple purchase” and concluding that Ripple similarly was only transferring the asset (XRP) to buyers. The issue, he says, is whether the regulator has proven that there was a contract between Ripple and investors surrounding XRP. According to him, no such agreement ever existed.  

Banks are likely watching the case closely as XRP threatens to lessen their control of the global financial system.  

XRP Price Analysis 

Compared to an all-time high of over $3, XRP is a far cry from its best days. However, Ripple CTO David Schwartz believes that the high price was calculated using an “official exchange rate that was too high,” pointing to a more realistic all-time high of $2.80. The XRP army would be satisfied if their favorite crypto could reclaim the $1 level for now.  

Schwartz also pontificated on the XRP supply and demand. He suggested that if the total XRP supply was 50 billion units rather than 100 billion (the highest amount of XRP that can be issued), the price would likely be 2x higher. However, this would mean “everyone would have paid twice as much for it as well,” he added.