XRP had a brief rally on Sunday after jumping from $0.37 to $0.39 but failed to breach its resistance levels of $0.40. The crypto is retracting in price on Monday despite experiencing a brief rally last week falling back to $0.37. XRP is mostly trading sideways in December to the days leading up to the final stages of the Ripple Vs SEC lawsuit.
If the case goes in favor of Ripple, XRP could get a boost in the indices and breach $0.50 in no time. However, it is unconfirmed that the final judgment will be passed this month making XRP remain on the back foot.
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Will XRP Beach $0.50 in December?
A string of events is holding XRP back despite performing better than leading cryptos in the last 30 days. The three most important things that are keeping XRP from rallying are:
High inflation
Ripple Vs SEC
Whale movements
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Inflation in the US
Inflation in the US is not brought under control despite repeated interest rate hikes by the Feds. The bears have grown stronger as the markets remained on the back foot for 12 months straight. As inflation takes control, a recession is most likely to hit the markets bringing jobs, stocks, and cryptos down. The momentum to lift the markets has no power and cryptos are now at the mercy of the bears.
Ripple Vs SEC Lawsuit
The Ripple Vs SEC lawsuit lacks clear updates making investors vary in pouring their money into XRP. While many claim the final judgment could be on December 15, 2022, others claim it could be in 2023. The contradictory reports and rumors about the ongoing lawsuit are taking a toll on XRP’s price in the indices.
Also Read: Ripple Vs SEC Lawsuit Could Be Settled By December 15: Cardano Founder
Whale Movements
Whales have been moving their XRP holdings to unknown wallets in the last 30 days. Just recently, an XRP whale transferred 4.12 billion tokens worth $.15 billion from Bittrex to a private wallet address.
The whales withdrew a large amount of XRP tokens in a series of transactions minutes apart from each other. Whales moving a large number of XRP tokens is among the reasons why its price is failing to cross $0.40. You can read more details about the latest whale transactions here.
The three developments indicate that XRP might not cross the $0.50 mark by December 31, 2022.
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At press time, XRP was trading at $0.37 and is down 3.1% in the 24 hours day trade. It is also down 88.9% from its all-time high of $3.40, which it reached in January 2018.