FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
113,137,507Confirmed
2,509,756Deaths
88,753,918Recovered
Fetching Location Data…
Advertisement
Advertisement
Anissimov Konstantin
Heaf of physical golden bitcoins and silver litecoins

The reason behind the fall was the SEC’s lawsuit against the founders of Ripple – the company that issued the XRP token – for the sale of XRP worth $1.3 billion along the years since the creation of XRP in 2013.

XRP is a highly centralised and permissioned token: Ripple controls who owns the nodes on its blockchain and selects entities who get to own an XRP node. Therefore, aiming at Ripple founders SEC hit XRP hard.

Advertisement
Know where Ethereum is headed? Take advantage now with 

75% of retail CFD investors lose money

Since then XRP fell to 0.1727 on 29th December, with investment organisations withdrawing it from their portfolios. The XRP/USD trading pair remains capped under the 0.2500 mark, and that is with BTC/USD rising above 34,000 and ETH/USD hitting 1,164. This is a clear implication of lack of good prospects for XRP/USD in the foreseeable future.

Everything will depend on how the case resolves, and that will surely not happen fast. The legal process will definitely be a long-lasting and highly contentious one, with the complainant’s evidence having to embrace years of Ripple’s XRP sales.

What to expect in 2021

Even though the current levels of XRP/USD look very lucrative from a technical point of view, buying bets on XRP/USD may not prove lucrative in 2021 after the massive outflow of value from the blockchain, including from big funds. The development of the legal process will be the main fundamental issue shaping the price behavior for XRP/USD in 2021. The key proceedings might create increased volatility in the pair, giving some short-term trading opportunities.

From a long-term point of view, the situation with XRP looks brumous and uncertain. The token’s chances of a return to its all-time high of $3.7 are no longer high. In a positive scenario, it could reach $0.6 by the end of 2021.

Konstantin Anissimov, Executive Director at CEX.IO

Advertisement
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk