Ripple Labs continues its legal battle with the SEC, making significant changes to its strategy that leads to new forecasts for the XRP cryptocurrency.
Ripple Withdraws Cross-Appeal
Ripple has confirmed its decision to withdraw its cross-appeal against the SEC. This decision, initiated by CEO Brad Garlinghouse, has sparked interest among both retail and institutional investors and contributed to a more than 5% increase in XRP's value. The withdrawal followed a U.S. district court's rejection of a combined request from Ripple and the SEC to reduce a $125 million penalty and reverse a prior ruling concerning XRP transactions.
Potential for XRP ETF Approval
By retracting the cross-appeal, Ripple demonstrates confidence in its business practices and regulatory compliance. If the SEC also decides to back down, it may lead to the resolution of this four-year dispute, providing more clarity for other digital currencies under the SEC's scrutiny. Analysts from Bloomberg suggest a 95% chance of XRP ETF approval, while the Polymarket platform indicates a 78% likelihood of approval this year. However, no formal steps in this direction have been reported.
Future of XRP Price
Despite a more than 35% decline from its first-quarter highs, XRP has shown resilience within its second-quarter support zone, indicating potential for a rally should favorable conditions arise. Although recent trends appear pessimistic, increased blockchain activity, vital partnerships, and newfound legal clarity suggest that XRP could experience significant growth, possibly targeting former highs around $3.39 or even higher.
Ripple's legal strategy may resolve a prolonged dispute, while rising optimism around potential U.S. ETF approval and the success of the Canadian XRP ETF highlight demand for this cryptocurrency. Ripple's strategic choices not only impact their trajectory but may also significantly reshape cryptocurrency regulation, drawing attention to the next phase of their legal battle with the SEC.
