XRP price crash to be offset by Ripple making growth in the European Market

XRP price is facing the brunt of the broader market as bearishness has been rising thanks to the regulatory uncertainty that grew after the Securities and Exchange Commission (SEC) chair failed to answer Congress' questions. While Gary Gensler continues to keep the crypto community confused, Ripple has decided to find its future elsewhere.

Ripple finds optimism in the European Union

XRP price has been long swung by the effects of the development in the Ripple vs. SEC lawsuit. But as the world awaits the final ruling, development in the east has caught the altcoin company's interest. 

Earlier this week, the European Union became the major jurisdiction in the world to set up crypto regulations. The Markets in Crypto-Assets (MiCA) law received approval, with 517 lawmakers voting in favor of the proposal. This has opened up doors for collaborative development for cryptocurrency companies and governments in the bloc.

This opportunity is being capitalized by the International Policy Counsel at Ripple, Susan Friedman. Friedman stated that while the US continues to focus on enforcement instead of clarity, the European Union has taken a big leap forward with a sensible, progressive approach to crypto regulation. 

Friedman noted that Ripple is now on the path to building and growing in the European marketplace. Further criticizing the United Nations' lack of regulations, the executive said,

"The US failure to adopt clear crypto regulations means driving activity offshore, which restricts our ability to monitor for illicit and criminal activity - the exact opposite result of what critics are calling for."

The current developments surprisingly stand in line with Ripple co-founder Chris Larsen's statement from nearly eight years ago. The clip shows that Ripple has been fighting the regulators for adopting blockchain and Distributed Ledger Technology for a very long time. Larsen noted,

"This technology has to be embraced by regulators, who will tell than tell their banks it's ok to implement these new technologies. It has to be implemented by the banks."

XRP price - suffering from success

One of the reasons for the XRP price crash was the excessive bullishness observed in the last few days. However, Gary Gensler's failure to answer questions related to the status of Ethereum - if a Security or not - further fuelled the bearishness resulting in a 16% crash.

XRP/USD 1-day chart

At the moment, most of the XRP price rally is driven by the investors' expectations of the SEC lawsuit being ruled in their favor. This is evident by the fact that network adoption has been meek, and existing investors' activity is also bearish.

The daily average volume transacted across the chain stands at a little over 2 billion XRP, which is worth $892 million. This volume shows that the XRP price is still relying on social cues for a recovery rally.

XRP daily transaction volume

Thus. investors should await some concrete bullish signals before jumping in right now in hopes of making a quick buck out of recovery.