The end of 2020 marked one of the most capitalized cryptocurrencies XRP XRP, coming under the spotlight of the cryptocurrency community. Developed by the American startup Ripple, this digital asset became the subject of scrutiny by the United States Securities and Exchange Commission (SEC).
The U.S. financial regulator accused Ripple of unlawfully selling its securities disguised as crypto tokens. Ripple representatives disagreed with the SEC regarding the organizational and legal status assigned to the digital asset. Ripple, being the creator of the XRP cryptocurrency, argued that the regulator's claims lacked grounds.
Cryptocurrency industry experts state that the outcome of Ripple's battle with the SEC will impact the coin's price. Currently, its value is lower due to the ongoing dispute with the American regulator. Many investors have begun closely studying the purchase of XRP tokens, seeing a potential opportunity to profit from the situation. Let's discuss what experts predict for the cryptocurrency in 2021.
StormGain: Coin's Future Depends on the Regulator
Analysts from the well-known anonymous cryptocurrency exchange StormGain were among the first to provide their forecast for this digital asset. They emphasized that the cryptocurrency industry cannot be predicted for an extended period. Therefore, the disputes with the U.S. financial regulator have made Ripple's positions even more precarious.
Digital asset exchanges predict a price ranging from $0.24 to $2 per coin. Analysts believe that the value of this cryptocurrency will reach $1 throughout 2021. The reason for such tariffs is based on the uncertain future of the startup due to the SEC accusations. However, a change in Ripple's location may push the digital coin towards an increase in price, as XRP can be traded outside the United States.
FREE2EX Exchange Analysts' Forecast
Alexander Shevelevich, representing the FREE2EX cryptocurrency exchange, believes that the SEC's victory in the dispute with the startup will lead to a collapse in the coin's value to $0.1 or lower. The expert believes that if Ripple representatives appeal any negative decision, it won't lead to an increase in the digital coin's price.
If the startup manages to prove its case, the cryptocurrency industry could experience a rapid 300% increase in XRP's price. Alexander Shevelevich noted that all trading platforms have frozen operations with the cryptocurrency until a court decision is announced. The FREE2EX analyst believes that the company awaits a positive outcome, but there are still chances of a fate similar to TON, developed by Pavel Durov.
The FREE2EX exchange expert highlighted that there are other companies in the crypto community working on a similar principle to Ripple. Therefore, the outcome of events will determine their further policies and longevity.
CEO ICODA Agency: Significant Opportunities for Ripple
Vladislav Pivnev, representing CEO ICODA Agency, noted that the conflict between the American regulator and the startup led to an immediate suspension of financial transactions with XRP tokens. The analyst believes that if the company can successfully resolve this conflict, it will open up significant opportunities for its development.
In the short term, legal proceedings will be accompanied by increased volatility of the digital asset: the coin's value will decrease after each news related to procedural actions by the regulator. However, XRP's price will also rise when there is mention of no serious consequences for its creator.
Vladislav Pivnev points out that Ripple has strong support from American bankers who have invested in the project and will defend it to avoid financial losses. For this reason, in the medium term, the outcome of legal proceedings will result in a significant fine and sanctions against the project's leaders. This means that the startup will face public condemnation but will still come out ahead.
The CEO of ICODA Agency commented on the halt of trading on some exchanges in pairs with Ripple. Vladislav Pivnev emphasized that this is a standard reaction of financial institutions to similar disputes and issues with financial regulators. The expert noted that cryptocurrency exchanges' refusal of this digital asset has not become global, so trading will resume almost immediately after the first interim decision on the regulator's conflict with XRP developers. This situation will prompt Ripple to take active measures, similar to what happened in 2015.
