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Can XRP (Ripple) Reach $5 in 2022?

Can XRP (Ripple) Reach $5 in 2022?
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Ripple’s digital payment system was on top of the world at the end of 2020 XRP (CRYPTO: XRP) The cryptocurrency that serves as RippleNet’s preferred transaction currency reached multi-year highs at $0.69 per token in late November as the vision of a super-efficient international payment system began to emerge together.

But progress came to a standstill just a few weeks later when the Securities and Exchange Commission (SEC) accused Ripple and its top executives of conducting $1.3 billion in deals in unregistered securities. Several cryptocurrency exchanges and trading services stopped offering XRP trades over the next two weeks and the coin’s price dropped below $0.18 per token before the end of 2020.

The XRP chart has been choppy ever since, rising or falling as the SEC lawsuit worked its way through the legal process. When the Securities and Exchange Commission intervened, many investors expected XRP to soon surpass all-time highs of just under $4 per coin. Is this still a reasonable goal in the near future?

lets take alook.

Legal challenge

Although the number of trading services for XRP tokens is very limited these days, the digital currency still boasts the eighth largest cryptocurrency market cap at $37.7 billion. It is only number 16 in terms of daily trading volumes, far behind leaders like pregnancy And Bitcoin But the currency peg almost ranked eighth.

In other words, XRP is still an actively traded cryptocurrency, even though several leading broker services are clearing their hands of the potential legal consequences that would result if Ripple is found guilty of perpetrating securities trading regulations.

This fact speaks volumes about the demand for fast and secure cross-border payments with minimal transaction fees. RippleNet offers all of these features, along with many different currencies – digital and fiat currencies.

The Securities and Exchange Commission (SEC) sees XRP’s position in the market from a different perspective. The lawsuit alleges that the token must be subject to the same rules and regulations as traditional securities, similar to stocks, bonds or options contracts. Ripple’s lawyers and CEOs are trying to explain to the court that these rules may apply to a store of value like Bitcoin but not to XRP. This symbol is arguably the closest match to old school currencies such as the euro, dollar or yen. As the functional lifeblood of the global payment network, XRP should be treated like a decentralized programming network Ethereum, which the SEC is happy to leave under the same banner as your favorite fiat currencies.

Patience is a virtue. Image source: Getty Images.

This process will take time

The outcome of the SEC lawsuit will either crush the value of XRP in the real world with strict regulations or allow the currency to flow through US cryptocurrency exchanges. Any shade of gray between these two extremes would be a win for Ripple in all practical matters. Do not forget that this case is likely to set the tone for the regulation of other cryptocurrency and blockchain networks.

The legal action began over a year ago and the case is still in the discovery stage, with both sides gathering evidence to support their claims. It could be years before we have a definitive result here, and the wait would really be long if the parties took full advantage of their appeal options.

XRP can hit $5, but not fast

It is not easy to anticipate the legal challenges, but the crypto market as a whole will benefit from the eventual judgment that leans in the direction of Ripple. This pressure may not mean much when the opponent is a division of the US government, but Ripple and XRP will at least benefit from high-quality legal advice and community support along the way. There is a lot at stake to leave cryptocurrency alone on top.

This is why a full SEC win would be such a surprise to me. It’s a possible outcome in my eyes, but not a likely outcome. XRP should absolutely rise above $5 if I am right.

However, you won’t get there quickly. The odds of a final verdict in 2022 are slim if not zero, so XRP investors should be hung up on a multi-year journey to reach that lofty peak. And again, patience is the best asset of any serious investor, because unbreakable patience combined with strong long-term growth means wealth-building returns.

All things considered, I wouldn’t mind keeping my modest collection of XRP tokens for the next several years as this legal drama begins.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of the Motley Fool Premium Consulting Service. We are diverse! Asking about an investment thesis — even if it’s our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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