The crypto exchange arm of Japan’s financial behemoth SBI Group has predicted a slight surge in Ripple’s native token XRP, following recent market developments.
In its latest market report, SBI VC Trade has projected an increase in the price of XRP to $0.62 from the current price of $0.56 at press time. The exchange also highlighted recent developments surrounding Ripple’s legal battle with the US Securities and Exchange Commission (SEC).
“However, as international remittance services using XRP are expanding, there is no doubt that this recent good news has removed a major burden on XRP, and XRP will be widely accepted by individual investors in the future, making it more popular than ever. If high liquidity is obtained, it is likely to rise as the XRP price stabilizes.”
The July 13 verdict by the US regulator on the legal battle between Ripple and the SEC, which started in December 2020, came as a surprise affecting the price movements of the XRP token.
“XRP soared immediately after the summary judgment on July 13th, but fell due to a wave of large profit-taking sell-offs,” the report noted.
The price of the XRP token appreciated to nearly a high of $0.90 level shortly after the ruling. However, the rally did not sustain, SBI VC Trade pointed out.
Later, the price of XRP retraced all the gains of that day when the SEC filed an interlocutory appeal on August 9, dropping to $0.63. The slump was also attributed to the rise in U.S. long-term interest rates.
On August 18, when Bitcoin plummeted, XRP fell further to $0.4405, below the pre-judgment level, the report added.
Judge Analisa Torres rejected the SEC’s motion to file the interlocutory appeal on Oct. 3, which again dragged the price above $0.548. However, the October rally did not sustain longer, dropping XRP to $0.47 on Oct. 12.
On October 24, XRP rose again to 0.5860, following the expectations for a Bitcoin spot ETF approval in the US.
SBI VC Trade further highlighted that “XRP is a risky asset,” given the recent market volatility and external border issues.
“However, considering that XRP is a risky asset, there are various risk factors underlying it, and it is difficult to imagine that it will continue to rise steadily.”
The report cited the issue of Russia’s invasion of Ukraine and the ongoing Hamas-Israel war in the Middle East. It also noted slower US inflation, concerns about the US fiscal deterioration and long-term high interest rates.
“In this situation, it is difficult to make the option of actively purchasing crypto assets other than XRP.”
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