Analyst says XRP investors’ expectations are inflated

John Deaton, founder of the Deaton Law Firm, attributed community discontent over the slow growth of Ripple’s XRP token to inflated expectations.

He replied to a post by a user under the pseudonym Moon Lambo. Moon Lambo noted that ‘I do not feel the emotional pain that some in the community display on social media.’ By his calculations, XRP has risen 85% since the start of the year.

For comparison, Bitcoin and Ethereum have risen 72% and 52%, respectively. Meanwhile, the S&P 500 index has gained only 17%.

According to Deaton, he never believed that the SEC’s case decision against Ripple would push the asset to new all-time highs.

“It’s all about expectations. Until we break into a full Bitcoin-led bull market, I will never believe XRP will reach an ATH, even after a favorable ruling in the Ripple case against the SEC. … Until the first cryptocurrency breaks its own high, I do not expect anything bigger,” explained the rights advocate.

On July 13, 2023, Judge Analisa Torres ruled that XRP sales directly to institutional investors violated the Commission’s rules, while retail offerings on exchanges did not. The coin’s price jumped sharply from $0.47 to $0.81.

However, later the asset’s price declined, falling 12.5% over the past week. At the time of writing, XRP was trading at $0.61.

The token last reached its peak at $3.84 more than six years ago.

Earlier, SEC Chair Gary Gensler said that the agency was ‘disappointed’ by the ruling affecting retail investors, but fairly satisfied with the verdict on institutional sales.

Earlier, former SEC attorney John Reed Stark described the court ruling in the Ripple case as ‘shaky’. He did not rule out that the agency would appeal, and that a higher court could overturn the previous decisions.