Ripple already locked in a fierce court battle with the US Securities and Exchange Commission over whether XRP should be classified as a security or not.
CEO Ripple, Brad Garlinghouserecently tweeted about being optimistic but cautious about what he does in 2023 in terms of regulations.
Because of this, XRP has been trading sideways, the movement has not changed since FTX collapsed. Adding to the downward pressure is significant whale activity in the market. according to Beware the PopeThe whale has transferred hundreds of millions worth of XRP to the open market with the largest transfer worth $92 million.
However, the market looks bullish despite recent bearish developments as XRP, at the time of writing, is up 2% in the past 24 hours. XRP is currently trading at $0.3435, down 0.5% in the last seven days, data by Coingecko shows.
Today is the first day of the 118th Congress. While previous efforts for regulatory clarity for crypto in the US have stalled, I am cautiously optimistic that 2023 is the year we will (finally!) see a breakthrough. A thread why…
– Brad Garlinghouse (@bgarlinghouse) January 3, 2023
What does the XRP case mean for Crypto and its value
The day the SEC filed the complaint, December 21, 2020, XRP dropped 67.13% on the chart. However, December 5th proved to be a day for XRP holders to rejoice. According to the report, The SEC failed to satisfy the three elements Howey’s test which determines whether the asset is a security or not.
This is a big win not only for Ripple but for the entire crypto industry as this will legitimize crypto’s place in the financial space. With the company and the public hoping to win, Ripple released for escrow over 55% of the total supply of XRP which is one billion XRP.
Although the market is very hopeful to win, Garlinghouse’s statement shows a very mixed sentiment about what 2023 will bring for the company and for the crypto world.
But he was very clear about what could – or better, should happen this year; break the status quo in current US legislation on what crypto should and shouldn’t be or America will lose its status as an innovation leader.
XRP total market cap at $17.3 billion on the daily chart | Chart: TradingView.com
Investors should be aware of this…
Now, the sideways market movement could be broken in the next few weeks. At the time of writing, investors and traders of the token pushed the price to test the $0.3680 price resistance range.
With a low correlation with Bitcoin and Ethereum, it can only be slightly dampened by bad macroeconomics fear of recession grow up
Crypto market FUD (fear, uncertainty and doubt), but it can be a problem. Currently, two events are sending negative signals to crypto investors. The first is Huobi decision to lay off 20% of a worker, and the second is in Genesis-DCG failed.
Any negative developments here could affect XRP’s ability to test some of its current resistance. As the situation develops, investors and traders should take advantage of the current bullish momentum of the token.
-Featured image: The Daily Hodl