XRP price likely to rally as Ripple gears up to hand US SEC a crushing defeat, according to pro-XRP attorney


  • XRP transactions cannot be deemed securities even if Judge Analisa Torres certifies the SEC’s application for appeal and stays the Ripple lawsuit, according to an attorney. 
  • Attorney Bill Morgan argues that institutions who use On-Demand Liquidity and acquire XRP as a bridge currency may do so for commercial purposes. 
  • According to Morgan, Ripple could appeal the finding that XRP sales to ODL users are investment contracts and secure a complete win against the SEC.

XRP price rally could be catalyzed by the recent spike in inflow from institutional investors, and Ripple's clear win in the lawsuit brought by the US financial regulator. A Pro-XRP attorney identified what Ripple can appeal for a landslide victory. This supports a bullish thesis for XRP price recovery in the long term. Find out more here.

Pro-XRP attorneys continue to weigh in on the speculation that XRP’s non-security status could be challenged by the US Securities & Exchange Commission’s (SEC) win in the interlocutory appeal. Attorney Bill Morgan says it is more likely that Ripple hands a crushing defeat to the financial regulator by appealing the finding that its XRP token sales to On-Demand Liquidity (ODL) customers constituted a sale of investment contracts.

Also read: XRP price spikes with increase in capital inflow from institutional investors

Ripple could land a complete victory if the firm appeals this finding

Attorney Bill Morgan, a pro-XRP lawyer, argues that institutions using On-Demand Liquidity acquire XRP as a bridge currency for commercial purposes. According to Attorney Morgan, payment giant Ripple could use this argument and appeal the finding that XRP sales to ODL users are investment contracts.

Ripple’s partial win against the SEC fueled institutional investors’ interest in the altcoin and XRP-related funds over recent weeks. A complete victory in the Ripple lawsuit could catalyze this interest further and likely drive higher capital to XRP funds. 

XRP proponent John Deaton says SEC’s appeal could mean this 

John Deaton, a pro-XRP attorney and founder of CryptoLaw, says that the SEC’s win in the interlocutory appeal could fail to negatively impact the XRP community. The financial regulator is unlikely to be able to reverse Judge Torres’ stance on XRP’s status as a “non-security.”

XRP holders could continue trading the altcoin across exchanges with the token’s growing utility. This implies the altcoin is likely safe from delisting or large volume selling pressure driven by the SEC’s interlocutory appeal.

XRP price 

At the time of writing, XRP is trading at $0.6058 on Binance. The altcoin erased gains from the past week and hit a monthly low at $0.5807. XRP price is in a multi-month uptrend, and the altcoin awaits bullish catalysts to drive recovery in the short term.

Cryptocurrency metrics FAQs

What is circulating supply?

The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.

What is market capitalization?

Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.

What is trading volume?

Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.

What is funding rate?

Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.


Like this article? Help us with some feedback by answering this survey:



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Convex Finance extends gains after facing short squeeze

Convex Finance extends gains after facing short squeeze

Convex Finance (CVX), the DeFi token, extends its rally to double-digit gains and raises 26% on Monday, as seen on Binance. Data from Coinglass shows large volume liquidation of short positions, to the tune of $722,000. 

More Cryptocurrencies News

XRP stuck below $0.50 while SEC abandons demand for $2 billion penalty

XRP stuck below $0.50 while SEC abandons demand for $2 billion penalty

XRP struggles to make a comeback above sticky resistance at $0.50 on Monday as traders continue to assess the legal skirmishes between blockchain firm Ripple and the US Securities and Exchange Commission (SEC).  

More Ripple News

Quant price poised for a short-term sell-off amid potential early-holder selling spree

Quant price poised for a short-term sell-off amid potential early-holder selling spree

Quant (QNT) price could have a short-term downward pressure. Data from Lookonchain suggests that an early holder has deposited 118,008 QNT tokens worth $9.78 million into the Kraken exchange.

More Cryptocurrencies News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin retesting its major resistance level

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin retesting its major resistance level

Bitcoin price is retesting its weekly resistance level of $67,147. Ethereum price finds support around $3,321, the price imbalance between $3,146 and $3,498. Ripple price faces rejection due to the key resistance level of $0.499.

More Cryptocurrencies News

Bitcoin: Has BTC found a local price bottom?

Bitcoin: Has BTC found a local price bottom?

Bitcoin (BTC) price looks set for a mild fall this week, weighed by slight outflows in the US spot ETFs and the US Fed keeping a hawkish interest-rate outlook despite easing inflation. Technical indicators suggest that BTC could face a further 5% correction in the short term before resuming the uptrend.

Read full analysis

BTC

ETH

XRP