XRP is currently facing a primary battle to break past the $1 level despite making a remarkable recovery from the Sunday seven-day low price of $0.66 that coincided with the overall crypto market volatility.
By press time, XRP was trading at $0.87, dropping below the psychological level of $1 at least for the third time in May in return, posing the question of whether the token’s rally has stalled?
In general, XRP price has suffered due to the ongoing lawsuit by the U.S. Securities Exchange Commission against the token’s parent company Ripple. According to the SEC, Ripple violated the law by classifying XRP as a security.
Amid the controversy, XRP is still struggling to live up to its initial hype, recording capital outflows resulting in a significant drop in market capitalization. Moreover, having lost its position to assets like Cardano and Binance Coin, XRP faces a constant threat from meme-inspired cryptocurrency dogecoin in terms of ranking.
However, Ripple attempts to put aside the lawsuit trouble by adding more use cases for XRP besides powering cross-border payments. Recently, Ripple has been mulling, venturing into the NFT frenzy powered by the XRP ledger.
Ripple’s NFT project intends to handle high gas fees for trading and mint fees for NFTs. Furthermore, Ripple still enjoys support in some parts of Asia like Japan, alongside interest in powering central bank digital currencies (CBDCs).
Ripple receiving support despite SEC lawsuit
Although XRP is still facing the heat from the SEC, the token has received support from top financial sector figures. For example, former U.S. Finance Treasurer Rosie Rio joined the Ripple board stating she was motivated by XRP’s real-world use case ability.
At the same time, backers of XRP have staged protests outside the SEC offices condemning the regulator for allegedly attempting to wipe out the token.
As XRP struggles to maintain upward momentum, the token is attempting to weather the storm amid the SEC legal troubles. XRP has been holding up after receiving a boost from New York Judge Sarah Netburn’s decision to grant Ripple access to SEC’s internal communications on how it determines whether a cryptocurrency is a security.
What is XRP’s price outlook?
Notably, the developments around the lawsuit will inform XRP’s next price movement to a large extent. But what is XRP’s general price outlook?
By press time, XRP’s resistance level was $0.9, and if this position is sustainable, the token will likely go ‘for a test’ to $1. If the asset breaks the $1 resistance level, it might attract more capital inflow from investors and position the asset to surge towards the critical $1.2 level. From this point, the uptrend movement towards $1.4 is next in-sight.
However, it is worth mentioning that XRP’s upside movement will also highly depend on what happens with bitcoin.
In terms of the XRP’s general price outlook, the token’s price will be guided by the wider crypto market sentiments provided the SEC lawsuit drags on.