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.
So institutions who use ODL and acquire XRP to use as a bridge currency may do so for these commercial reasons not for investments with an expectation of profits from XRP price appreciation. How can Ripple not appeal the finding XRP sales to ODL users are investment contracts. https://t.co/4f7LoiHFZI pic.twitter.com/6xffM6ZhD5
— bill morgan (@Belisarius2020) August 16, 2023
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.”
In this article it’s says:
— John E Deaton (@JohnEDeaton1) August 11, 2023
“In short, most XRP transactions might still be securities transactions.”
This is NOT true and constitutes total FUD. Even if Judge Torres agrees to certify the interlocutory appeal and stay the case (HUGE ASSUMPTIONS, especially the stay), it would… https://t.co/o7VLWbszUo pic.twitter.com/5T0H57UC8A
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.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
