Ripple Vs. SEC: Institutions Eye XRP Amid Legal Uncertainty
- SEC’s appeal extends Ripple’s case, offering institutions cheaper XRP buying opportunities.
- Retail fear sparks XRP sell-off, while institutions accumulate at discounted prices.
- Ripple’s global adoption grows despite ongoing SEC legal challenges in the U.S.
The ongoing lawsuit between Ripple and the SEC has generated risks and opportunities and created a lot of turbulence in the cryptocurrency market. While the SEC still seeks to continue with the case against Ripple, investors are torn between the fate of XRP and this latest appeal.
While retail investors may be worried about the situation, institutions see it from a different angle. The Ripple token faces a lawsuit, which makes the future of XRP very uncertain, which could be an advantage for large investors. This could be the perfect opportunity for institutional investors to purchase XRP at low prices, as others may panic and sell their holdings out of fear of the SEC’s appeal.
Analyst Insight on XRP
Edo Farina, the CEO of Alpha Lions Academy, shed light on this in a YouTube video on Monday. As far as Farina is concerned, this could mean that the SEC’s appeal level could allow institutional investors to buy XRP at a discount. Short-term market volatility and legal concerns, XRP is expected to continue with an upward trend due to increasing integration into the global financial system.
When the Securities and Exchange Commission (SEC) sued Ripple in December 2020, the price of XRP dropped to around $0.17. That caused many retail investors to leave the market. However, during this period of volatility, institutional investors gradually piled up XRP, a pattern that may be repeated given the recent action by the SEC.
Ripple Global Adoption
The pressure from US regulators persists, but the company’s strategy is still in progress. Cryptocurrency is still growing in the international markets, while more regions are looking into the possibility of CBDC. For instance, BRICS and G7 countries are eager to adopt Ripple technology because of the convenience of cross-border payment and CBDC.
The SEC’s appeal may delay the court proceedings but it appears that it would not affect the XRP price significantly. For institutional investors, this extended period of volatility represents an opportunity to make profits on the fluctuations. Nonetheless, the retail investor should be careful in the present scenario due to the ongoing Ripple vs SEC case.
The post Ripple Vs. SEC: Institutions Eye XRP Amid Legal Uncertainty appeared first on CryptoTale.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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