FX.co ★ Legal proceedings and possible relisting. Analysis of XRP/USD

Legal proceedings and possible relisting. Analysis of XRP/USD

During the last several days, Ripple has been a leader in the cryptocurrency market. The price has been soaring. On April 7, Ripple jumped to $1.11, reaching its 3-year high. In a week, the coin increased by 66.9%. However, it is highly possible that despite the mounting demand and higher prices, the asset causes a lot of concerns among investors.

First of all, such concerns were provoked by the legal proceeding between such companies as Ripple and SEC. A court decision will determine the future of the cryptocurrency regardless of its rises and numerous investors. At the moment, both parties have equal chances to win the lawsuit. However, in some aspects, Ripple has an advantage. For example, during the legal battles, SEC representatives were forced to confirm the validity and value of the XRP token. It is worth noting that this news was unveiled right before the appearance of rumors about the relisting of the cryptocurrency. The most recent announcement was the court's demand for SEC to provide Ripple with the documents about BTC and ETH.

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Legal proceedings and possible relisting. Analysis of XRP/USD

At the same time, the scandal between the companies has a negative influence on altcoins. For example, users filed a lawsuit against the well-known cryptocurrency lender, Nexo, because of the suspension of the use of the token and the liquidation of customer assets worth more than $5 million. This situation reflects how negatively the company's policy affects the quotes of the XRP/USD pair.

If SEC wins, this may threaten the existence of XRP. While the trial is in full swing, the XRP/USD pair is surging. In the last 24 hours, the asset jumped by 5.7%. However, traders should understand that the natural rise in demand is accompanied by some artificial factors.

Holders of the cryptocurrency, that bought it during its peak in 2018, are trying to push the price higher to leave the market with minimum losses. Once big players begin closing their positions, the XRP/USD pair will surely lose in value despite good conditions and an increasing number of retail traders.

What is more, the reputation of Ripple is not brilliant because of a lack of transparent reporting. As a result, traders cannot receive information about a real volume of sell positions. The fact is that the company's unclear policy towards market participants has attracted the interest of SEC. Now, it is obvious that the coin's future depends on the court decision. In case of a positive scenario, the XRP/USD pair is likely to rally to new all-time highs. If the news flow remains the same, the asset will easily pass the level of $1.2 to reach higher readings. In the worst-case scenario, the asset may slump to its record lows.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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