Crypto podcaster Abdullah Nassif recently commented on the potential price of XRP, assuming the SEC lawsuit against Ripple never happened.
Notably, four years ago, in December 2020, the U.S. SEC took Ripple to court for allegedly selling unregistered securities in XRP tokens.
A week before the lawsuit, XRP traded at $0.6539. However, following the announcement of the suit on December 22, 2020, XRP’s price took a hit. Specifically, it crashed by over 50%, dropping to $0.2214 by the next day.
The price slump worsened over the subsequent days, bottoming at $0.1748. This was the lowest price XRP ever reached following the SEC lawsuit filing, according to CoinMarketCap data. From this point, the asset recovered, though the price remained within a confined range between $0.3 and $0.5.
Notably, from XRP’s pre-lawsuit high of $0.6539 in December 2020 to its lowest point of $0.1748 on December 29, 2020, the legal development caused a 73% drop in XRP’s price. For context, an investor who had $100K in XRP saw their portfolio drop to $26,756.
Fast forward to today, after XRP won the SEC lawsuit, the token is trading at $3.15. This marks a massive recovery of 1,338% from the lawsuit-induced lows of $0.1748.
What if the SEC Lawsuit Never Happened to XRP?
Meanwhile, XRP enthusiasts are now pondering what the current price of XRP might be if the SEC had never sued Ripple.
Widely followed market commentators, like Abdullah Nassif, have argued that XRP could be worth $12.80 per token. He derived this figure by drawing inspiration from Bitcoin’s performance after the 2020 halving.
XRP Potential Price Based on Mathematical Estimations
On the day the Bitcoin mining reward halved on May 11, 2020, XRP traded at a low of $0.1885. Three months later, it briefly rose to the $0.30 range. By November, XRP had surged by 307%, climbing from its low on Bitcoin halving day to a daily high of $0.768.
Meanwhile, on December 22, 2020, when the suit was revealed, XRP traded at an intraday high of $0.5216. If the suit had never happened, XRP’s trajectory may have continued from this price rather than the dip to $0.1748.
Since XRP soared by 1,560% from this low, a similar growth from $0.5217 would put XRP’s price at $8.65.
Meanwhile, XRP’s ascent during the 2020/2021 bull season was largely hindered, as many U.S. exchanges had already delisted the token, limiting market access. Essentially, XRP could be trading much higher than $8 if the lawsuit had never happened.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
