Investors are wondering whether Ripple can pull the same astonishing feat and put smiles on their faces.
Ripple (XRP) is one of the cryptocurrencies badly hit by the recent dip that has ravaged the entire cryptocurrency market.
The total market valuation has lost more than 10% since Thursday last week after the Federal Reserve announced that it would be raising interest rates, in a bid to curb rising inflation in the United States.
XRP, the cryptocurrency tied to the popular blockchain company Ripple, fell to a low of $0.48 late yesterday, with investors forced to convert a majority of their holdings to stablecoins.
Although the recent dip that took place last week is not the only factor responsible for the XRP’s recent loss, the token has suffered majorly from developments in the ongoing lawsuit between Ripple and the Securities and Exchange Commission (SEC).
XRP Prints Six Red Weekly Candles
Following all these events, XRP has now recorded six red weekly candles so far, as the cryptocurrency struggles to recover from its numerous challenges.
While this may seem like a hard pill to swallow for investors, it is noteworthy that the last time XRP suffered a similar fate, the coin embarked on its strongest bullish run that saw it reach an all-time high of 3.40 on January 4, 2018. XRP is now trading at $0.53 and fast approaching the 50% Fib retracement.
Although it may seem unlikely that XRP would be able to replicate a similar feat this time around following its lawsuit with the SEC, it is possible that the coin can still put smiles on the faces of investors again.
XRP May Still Make Investors Happy
However, it is just a matter of time, especially if the outcome of the lawsuit happens to be in favor of the blockchain company.
The Ripple v SEC lawsuit is currently the most talked about case since the inception of the cryptocurrency industry, as the outcome will determine which digital currency will fall under the Securities and Exchange Commission oversight.
A win for Ripple would see the price of XRP soar tremendously after U.S.-based trading firms announced support for the coin again. However, should the blockchain company lose the lawsuit, XRP prices may dip further as U.S.-based crypto-related platforms will not make a U-turn and add support for the cryptocurrency.
Meanwhile, Ripple’s CEO and founder noted earlier that the blockchain company is already operating like it has lost the lawsuit.
In the meantime, Ripple is expected to file a response to the SEC’s recent assertion that William Hinman’s documents are protected by attorney-client privilege this week, which implies that the documents cannot be made available to be used as evidence in the case.