Experts point to uncertainty about XRP’s future despite asset rally

He added that if the company loses the case, XRP risks being ultimately squeezed out of the crypto market, and if it wins — its price could soar severalfold.

“However, even as the asset climbs, one should remember that this is a fully commercial project, which has only a tenuous relation to the crypto world,” noted Kivkulis.

The coin has Indeed earned an ambivalent reputation in the community. Sergey Mendeleev, founder of Garantex and CEO of Indefieco, said that commenting on Ripple is “bad form.”

Head of data analytics at CEX.IO Broker, Yuri Mazur, links the current XRP rally to catching up with lost momentum, supported by inflows of new investors and the return of old players.

“Investors who bought XRP at peak values benefit from pushing the price higher to minimize their losses. And new XRP investors are drawn by clarity about the bounds of potential growth. The nearest likely levels for the token’s price growth are $3.2–$3.7,” asserts the specialist.

The main factor for all market participants Mazur cited is the outcome of the litigation with the SEC:

“If market participants get a hint of a favorable outcome for Ripple, XRP/USD is likely not only to return to the 2018 peak but also to set new all-time highs.”

According to the analyst, technically the XRP/USD pair is entering a second wave of growth, while other assets await a third wave.

“The XRP pump will probably be initially limited to the resistance zone around $1–$1.2, from which there will be a minor correction. Then, with favorable fundamental conditions, a sharp rise to $3.2 is quite possible. However, under a negative scenario, the correction from $1–$1.2 will turn into a downtrend. For now, the probability of either outcome is roughly equal,” concluded Yuri Mazur.

Co-founder and managing partner of Tokenbox, Vladimir Smerkis, ties XRP’s rise to prevailing bullish sentiment in the crypto market:

“I think everyone has somewhat moved away from the lawsuits and is in a calmer mood. There is quite a large level of greed that drives people to buy certain coins, including XRP.”

The expert regards Ripple’s adoption by global banks as a major plus, seeing it as a financial technology for transferring and controlling the distribution of funds. However, he associates a high level of risk with the token.

“Fundamentally I consider this coin to be quite high-risk, and I would not recommend investing more than 5%–10% of a total crypto portfolio in it,” concluded Smerkis.

Head of Six Nines data center Sergey Troshin named volume manipulation and the recent relisting rumors of XRP on exchanges as among the most likely causes for the rally.

He reminded that the token’s opacity and community dissatisfaction with large-volume sales by top managers had been factors pressuring the price.

“This year, concerns have arisen not only from traders but also from the SEC. Yet traders from Reddit came to the token’s rescue — they have repeatedly helped those sinking this year. But manipulation was not absent here either — the price fell under a wave of selling, and many buyers were left with losses.”

From this, Troshin concludes that “however the SEC case is resolved, XRP remains a dubious investment.”

Earlier, an analyst and trader under the nickname CredibleCrypto wrote on Twitter that XRP would soon reclaim third place by market capitalization.