According to Edward Farina, the founder and CEO of various crypto-focused initiatives, XRP is a better “investment” now compared to before July when the SEC claimed it was an unregistered security. Farina expressed confidence in this claim in a post on October 9. Despite XRP being declared not a “security,” Farina is concerned that prices have remained at the same level as before the July 13 ruling.
XRP Bears Reversed July 2023 Gains
XRP, the native coin of the XRP Ledger, a decentralized blockchain that recently supported smart contracts, is one of the most liquid crypto assets. It currently ranks fifth in the market cap leaderboard, behind Bitcoin (BTC), Ethereum (ETH), BNB, and USDT. Despite the SEC lawsuit against Ripple’s top executives, including Brad Garlinghouse, XRP has managed to withstand bear pressure. The lawsuit, filed in late 2020, accused Ripple of conducting an illegal crowdfund and caused XRP prices to fall by 78%. However, XRP found reprieve in 2021, rallying to as high as $1.95 before experiencing price fluctuations and stabilizing in the latter half of 2023.
XRP price on October 9| Source: XRPUSDT on Binance, TradingView
In July, XRP prices briefly rose to $0.92 before retracting, ultimately wiping out all gains by mid-August. Although prices have stabilized, bears have nullified the gains from the rally triggered by the July 13 court ruling that stated XRP is not a security when sold to the general public on an exchange (but remains a security when sold to institutional investors). In early October 2023, Judge Analisa Torres barred the SEC from appealing the decision made in July, claiming there was no “substantial ground for difference of opinion.” The trial is scheduled for April 2024.
Prices Make Zero Sense?
After the Judge’s decision to prevent the agency from appealing, XRP prices have remained relatively stable but at pre-July 2023 levels. Farina believes that XRP should be valued higher, suggesting that the market “makes absolute zero sense and price manipulation is real.” Whether or not XRP prices are actually manipulated is unclear at spot rates. However, the broader crypto market, including Bitcoin and Ethereum, has cooled off since reaching highs in July 2023.
Feature image from Canva, chart from TradingView