The latest appeal by the United States regulator in its case against blockchain payments firm Ripple may further push market participants to adopt a more risk-off approach to XRP in the short term, according to a crypto analyst.
The comments come despite the recent filing not directly challenging the ruling that XRP is not a security. The appeal asked the court to review its decisions regarding Ripple’s XRP sales on exchanges and personal XRP sales by Ripple CEO Brad Garlinghouse and co-founder Chris Larsen.
The legal uncertainty could widen XRP’s (XRP) price volatility, pushing the asset to potentially fluctuate within a range of nearly 50%, the analyst believes.
Price projection ‘highly contingent’ on regulatory developments
“XRP’s price is likely to fluctuate between $0.50 and $0.80 by the end of the year, though this projection is highly contingent on regulatory developments and shifts in sentiment, particularly within the U.S. market,” Bitget chief analyst Ryan Lee opined in an Oct. 18 report viewed by Cointelegraph.
This hesitation could translate into short-term price volatility for XRP, as the market waits for more concrete results.
The last time XRP surpassed the $0.80 mark was in March 2022. This year, its highest price has been $0.71, which was reached in March, according to TradingView data.
At the time of publication, XRP is trading at $0.55.
Ripple’s chief legal officer Stuart Alderoty recently claimed that the briefing process will likely extend through July 2025.
XRP is trading at $0.55, up 0.42% since Oct. 18. Source: TradingView
Lee outlined that the end result may have a significant weight on XRP’s price.
“A favorable ruling or increased international support for Ripple could lead to a notable price increase for XRP. On the other hand, an unfavorable outcome may push the price downward,” Lee wrote.
The appeal introduces ‘regulatory ambiguity’
“The appeal introduces further regulatory ambiguity, particularly within the U.S. cryptocurrency sector. Investors may adopt a more cautious stance, as the final legal outcome remains uncertain,” Lee added.
Related: Ripple to add smart contracts to XRP Ledger
On Oct. 16, Cointelegraph reported that Tim McCourt, senior managing director at CME Group, said the first major step had been taken toward XRP exchange-traded funds (ETF).
“We do have an XRP reference rate and a real-time index, which is a first step in building out this ecosystem,” McCourt stated.
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