In January 2021, XRP fell from last year’s high of $0.7872 to a low of $0.2108 in January 2021. XRP hit the 2021 high of US$1.9660 in April with the support of the broader market, and then fell back to the level of US$0.50.
The SEC’s lawsuit against Ripple Lab led to a sell-off. However, later this year, those hoping to reach a favorable settlement with the SEC hope to see XRP test resistance at $1.00.
The SEC’s action against Ripple Lab and two executives stated that it had raised more than $1.3 billion through unregistered, continuous digital asset securities issuance. The key to the claim is that the SEC classifies XRP as a security. This is in sharp contrast to ETH. In June, the US Securities and Exchange Commission stated that the sale and sale of ETH is not a securities transaction. The announcement supports ETH’s reaching USD 4,868 in November.
The market value of XRP is currently US$43.77 billion, which has risen from a January low of US$10.78 billion to a one-year high of US$83.51 billion and then fell back.
What is the next step for Ripple XRP in 2022?
The bias claims against the SEC filed by the non-profit government regulator Empower Oversight will be key. Empower Oversight alleges that SEC officials are biased against Ripple Lab and XRP. The verdict in support of Empower Oversight will give the SEC more reasons to end its claim against Ripple Lab, which should benefit XRP.
This result of the claim may cause XRP to break through from ATH USD 3.35 in January 2018. Some people are talking about reaching the $5.00 level this year. However, unfavorable results will have a devastating effect on XRP and XRP holders. Despite the devastation, the market is more optimistic than earlier this year.
However, in addition to the results of these two lawsuits, broader crypto market trends will also have an impact. A bearish year for the crypto market may see XRP fall back to the level of $0.50. The downside risk to the broader crypto market remains greater regulatory oversight.