Following the ongoing legal case between SEC and Ripple, a new insight has surfaced that highlights a rather surprising stance from the SEC.
According to a document shared by Anderson, an assets researcher in a tweet on X, the SEC acknowledged that speculations are key to improving XRP’s utility and price.
The document Anderson posted came from Ripple’s lawsuit which includes an email that Ripple CEO Brad Garlinghouse. Garlinghouse sent to his board members back in April 9, 2017.
In the email, Garlinghouse pointed out that the surge in XRP’s market activity and price was a major development for the company. This is something that the SEC took into account, acknowledging that speculative trading is what bring liquidity to the XRP ecosystem which is important for Ripple’s product.
This indicates that SEC recognizes that buying and trading of XRP is not just for transactional purposes but also for potential gain. While speculation is often considered risky, it plays a critical role in building the liquidity Ripple needs to operate its payment solutions, like its On-Demand Liquidity (ODL) product.
This Tweet from Anderson has gotten the XRP community talking. Some are surprised that the SEC would use this as an argument. While others see it as validation for XRP’s future. Speculative trading is crucial to XRP’s liquidity. It could mean that the token’s value is more resilient than previously thought.
However, some members are still concerned about Ripple’s upcoming RLUSD stablecoin. People are wondering if it could eventually replace XRP in Ripple’s payment system. But Ripple has clarified this, saying that XRP still plays an important role in its cross-border payment system.
Garlinghouse’s comments, as highlighted by the SEC, suggest that as long as speculation drives significant price movements in XRP, the token will remain central to Ripple’s ecosystem.
XRP Price: Stuck or Ready for a Breakout?
As of press time, XRP is trading at $0.5906 with a 9% decrease in total trading volume. Trade volumes dropped to $897 million in the last 24 hours.
While that might not sound exciting, analyst are predicting that the cryptocurrency is on the verge of making a major price move soon. However, opinions are divided on which way it will go.
According to Jackis’s analysis posting on X, XRP has been stuck in a long sideways trading pattern for over seven years. He warned that the crypto might soon see a breakout as its support level looks weak.
On the other hand, another analyst, Javon Mark thinks this consolidation phase could lead to a big price pump. Price gains can be expected if it breaks out of range to the upside.
Mark projected a potential price target $263, which is over $42,000% spike from its current price. However, such projection, while exciting, should be approached with caution.
