Ripple Labs, the blockchain company that has been engaged in a legal battle against the US Securities and Exchange Commission (SEC), is rumored to be considering announcing its Initial Public Offering (IPO). The news comes as the company prepares to host a grand celebration party in New York on September 29, to mark its partial victory against the SEC.
According to Ripple CEO Brad Garlinghouse, details of the event will be unveiled soon. The announcement of an IPO at this event could potentially trigger a bullish run to $1 in the near term. Currently, XRP is down by 24 percent in the last 30 days.
Analysts have noted that the volatility of XRP has significantly reduced recently and the price has failed to make any substantial price swings. Since declining from $0.55 on August 20, the price has been hovering within the range of $0.5030 and $0.5398. This lack of price movement indicates uncertainties among market participants and investors. It is worth noting that the entire crypto market has also experienced reduced volatility, with major assets failing to trade above or below their critical points. XRP has been consolidating just above its 200-day EMA ($0.5171) with no clear direction in the past seven days. Furthermore, it has remained below its 50-day EMA ($0.5828).
Despite the lack of price movement, XRP’s network activities have been on the rise since the start of August. The XRP Network Value to Transaction Volume (NVT) ratio, which measures the network’s overall value relative to its transaction volume, has seen a 400 percent increase from August 18 to August 29. This suggests that the current run of the asset is influenced by factors outside the network.
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However, there are potential setbacks that could affect XRP’s price on its way to $1. Analysts have observed that the market has experienced price corrections of XRP on August 1, August 16, and August 25, each of which was preceded by a significant fall in the Mean Coin Age. This metric measures the trading sentiment of long-term investors. When long-term holders exit their positions, it often signals a market pullback in the near future. If this trend continues, it could invalidate the prediction of XRP reaching $1.
Another factor that could significantly impact XRP’s price is the decision of the court on the SEC’s motion for interlocutory appeal. The court has asked the Commission to review its rejection of Grayscale’s Bitcoin Exchange Traded-Fund bid. Ripple’s Stuart Alderoty has expressed optimism about the outcome, stating that the SEC is getting “battered” in the court. The court’s decision on this matter could have a substantial effect on XRP’s price.
In conclusion, as Ripple prepares to celebrate its partial victory against the SEC, rumors are swirling that the company may announce its IPO at the event. This announcement could potentially trigger a bullish run to $1. However, there are potential setbacks and uncertainties in the market that could affect XRP’s price. Investors will be closely watching for any updates and developments in the legal battle between Ripple and the SEC, as well as the court’s decision on the SEC’s motion for interlocutory appeal.
