Ripple has been locked in a bitter court battle with the US Securities and Exchange Commission regarding whether or not XRP should be classified as a security.
Ripple CEO, brad garlinghouserecently tweeted about him being optimistic but cautious of what 2023 brings in terms of regulations.
Because of this, XRP has been trading sideways, a move that hasn’t changed since The FTX Collapse. Adding to the downward pressure is the significant activity of whales in the market. According to whale alertthe whales have been moving hundreds of millions of XRP to the open market with the highest transfer value $92 million.
However, the market looks bullish despite the recent bearish developments, as XRP, at the time of writing, has rallied by 2% in the last 24 hours. XRP is currently trading at $0.3435, down 0.5% over the past seven days, Coingecko data shows.
Today is the first day of the 118th Congress. While previous regulatory clarity efforts for cryptocurrencies in the US have stalled, I am cautiously optimistic that 2023 is the year we (finally!) see a breakthrough. A thread about why…
—Brad Garlinghouse (@bgarlinghouse) January 3, 2023
What the XRP case means for Crypto and its price
On the day the SEC filed the complaint, December 21, 2020, XRP fell 67.13% on the charts. However, December 5 turned out to be a day XRP holders should rejoice. According to the report, the SEC failed to comply with all three elements of the Howey’s test which determines whether the asset is a security or not.
This is a huge win not just for Ripple but for the entire cryptocurrency industry as it would legitimize cryptocurrency’s place in the financial space. With the company and the community hoping to win, Ripple launched to deposit more than 55% of the total supply of XRP, of which 1 billion XRP.
Although the market has high hopes of winning, Garlinghouse declaration shows very mixed sentiment about what 2023 will bring for the company and for the world of cryptocurrencies.
But he is very clear about what could –or better yet, should– happen this year; break the status quo in current US legislation on what crypto should and shouldn’t be or America will lose its status as a leader in innovation.
XRP total market cap at $17.3 billion on the daily chart | Chart: TradingView.com
Investors should beware of this…
Currently, the market’s sideways movement could be broken in the coming weeks. At the time of writing, investors and traders of the token are pushing the price higher to test the price resistance range of $0.3680.
With a low correlation to Bitcoin and Ethereum, it may only be slightly tempered by poor macroeconomics as recession fears grow up.
However, the FUD (Fear, Uncertainty, and Doubt) crypto market could become a problem. As of now, two events are sending negative signals to crypto investors. First is Huobi’s decision lay off 20% of its workers, and the second is the Genesis-DCG Fiasco.
Any negative development here could affect XRP’s ability to test its current resistance range. As the situation unfolds, investors and traders should capitalize on the token’s current bullish momentum.
-Featured Image: The Daily Hodl
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