As the much-anticipated settlement between Ripple and the U.S. SEC nears, one popular analyst is cautioning that XRP may not see the same explosive growth it experienced in July 2023.
For context, reliable sources told FOX Business journalist Eleanor Terrett that the Ripple lawsuit is coming to an end. Notably, the company and the SEC are now negotiating settlement terms. The initial delay followed Ripple’s insistence on more favorable settlement terms.
Notably, XRP holders have been eagerly awaiting this news, hoping it would be the major catalyst to send XRP soaring. However, analyst Dom believes holders may be disappointed with XRP’s performance following the settlement news this time.
Back in July 2023, when the court declared that XRP was not a security, the cryptocurrency saw a historic price surge. It jumped by 100% in four hours before cooling down.
Why XRP Surge May Be Low This Time
In his commentary, Dom stressed that XRP’s previous surge caught investors off guard. Moreover, the primary focus at that time was on the legal status of XRP, which sparked significant buying activity.
Unlike the surprise ruling of 2023, the market has been anticipating a settlement between Ripple and the SEC this time.
Dom pointed out that there is now “high confidence” that the settlement will surface soon, particularly after recent news leaks. As a result, the element of surprise is gone, and XRP’s price reaction may be far less dramatic than in 2023.
Another key distinction between now and July 2023 is the focus of the news. While the 2023 ruling clarified the legal status of XRP itself, this time, the spotlight is on Ripple as a company. Specifically, Ripple is attempting to settle its penalty for illegally selling XRP to institutional investors. This violation earned the company a $125 million fine.
How High Will XRP Go?
While the settlement news could drive some positive momentum, the analyst believes any potential surge will likely be much more modest. According to him, the market would be lucky to see a 20% increase.
At press time, XRP is trading at $2.22, up 4% today on the incoming settlement leaks. A 20% increase from here would put the price at $2.64.
For investors who believe XRP has already reached its peak or are considering cashing out, Dom suggests that the settlement news could offer a “small exit pump.”
Ripple’s Post-Settlement Plans Could Be the Real Driver
However, Dom highlights that Ripple may have been holding back announcements about new developments or initiatives until the legal matters with the SEC are over. He believes that this news could be the real driver for XRP’s long-term trajectory.
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.
