The past week proved extremely volatile for Ripple, news about the stablecoin and various partnerships caused a bullish rally. However, with the recent move by the Executive Chairman, Chris Larsen, and the XRP vs. SEC case nearing a climatic conclusion, the tension among investors is high.
With the SEC appeal decision being uncertain, it is impacting heavily on XRP, with market participants fearing a potential price drop below $0.04 if the appeal goes through.
Ripple’s Internal Strategy?
Ripple Co-founder Chris Larsen’s move to transfer 50 million XRP, worth $29.12 million, to an unknown wallet, has added fuel to the fire.
🚨 🚨 50,000,000 #XRP (29,120,312 USD) transferred from Chris Larsen to unknown wallethttps://t.co/D9iopMqePM
— Whale Alert (@whale_alert) September 16, 2024
This move has led people to speculate if this is a strategic move to gain the trust of the investors as reports of Larsen leading the $10 million investment in Yellow Network, a DeFi Protocol came out the same day.
Another speculation was raised that it was a donation to Kamala Harris’ campaign as Chris Larsen has publicly endorsed her recently.
The Executive Chairman of XRP has a reputation within the Ripple community where he is in a position that commands respect. All his transfers are monitored and influence the XRP price, the $30M drain did cause some negative effects.
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This large transfer does raise questions about the internal strategy, especially considering the company’s request for a stay on its $125 million penalty.
The SEC Angle
With the Binance case, the uncertainty lingers further. SEC’s stance on cryptos is a critical factor and how this case is rolling out just makes many wonder if Ripple is being unfairly targeted. Whereas, some speculate that there is a hidden agenda to Ripple vs. SEC case.
The moving speculation around this is that it could be a strategic move to increase XRP’s official adoption in the mainstream financial sector which will allow it to play a larger role in the global finance sector.
For the investors, the next few weeks are going to be pivotal. If there is an appeal from the SEC, there will be a sharp drop in the XRP price, and vice-versa if the SEC does not file for an appeal.
Despite a recent bullish run, XRP lost 2.6%, as the current price stands at 0.5712, raising concerns about growing investor caution.
This period until October 7, 2024, is very difficult for the investors as the question remains, what if Ripple cannot navigate through these waters and restore the confidence among the investors?
As the SEC appeal decision draws near, XRP investors are bracing for the impact. Will diamond hands’ conviction be enough to overcome regulatory uncertainty? Only time will tell.
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However, one thing is certain, the outcome will have a far-fetched impact on XRP, Ripple, and the entire crypto market.
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