Why XRP Price May Not ‘Go Parabolic’ Post-SEC Settlement

The XRP price holds still in the $2.10-2.20 range for the past few days, but this is not stopping Ripple's community from continuing to post various content about XRP

Crypto veteran Austin Hilton, known for his analysis on YouTube with a following of 344,000 subscribers, has shared his take on why XRP might not experience a substantial price surge despite the upcoming SEC settlement.

In his latest video, Hilton cautions viewers that they might be disappointed if they're expecting XRP prices to skyrocket after the SEC case concludes. He notes that this outlook on XRP stands in stark contrast to the content he typically shares with his audience.

However, he believes in delivering honest perspectives, especially when they differ from the common narrative within the XRP community.

"I'm not trying to be a downer, but I'm just trying to keep it real with you guys," said crypto veteran Austin Hilton.

The lawsuit between Ripple and the SEC appears to be nearing its end, with meetings between the two parties' lawyers now complete. Within crypto circles, it's widely assumed that the case is essentially over. While the SEC is aware of this, they haven't yet made any formal announcements.

Initially, Ripple was facing a $125 million judgment, but reports suggest this amount has been reduced to $50 million. Speculation arose that Ripple might pay the fine using XRP tokens, although no confirmation has been provided.

Despite rumors of a looming settlement, and despite the SEC case being the main topic of conversation in the crypto sphere for the past few years, Hilton doesn't anticipate a significant surge in XRP when the news finally breaks.

He explains that this outlook isn't driven by pessimism but rather by observations of the broader market trends. Since December, crypto prices have largely stagnated, with even major positive news having minimal impact on price movements. This lack of volatility suggests a dearth of momentum within the market.

“The market has no momentum whatsoever. We’ve seen some big news hit and nothing really moves. We’ve seen some bad news hit and nothing really moves. It’s just kind of flatlined,” added Hilton.

The lack of substantial price reactions to good news suggests that most traders are already anticipating such developments, and this anticipation is reflected in the current market prices. In essence, the good news has already been priced into the market.

Moreover, when an event is widely discussed and expected for a long period, it tends to lose its power to generate immediate price changes once it occurs, especially if it arrives slowly and gradually.

Furthermore, global issues are affecting investor interest. Concerns like tariffs, the Russia-Ukraine conflict, China's economic performance, and instability in the Middle East are making investors cautious, leading many to withdraw their funds.

Less investor participation translates to lower trading volume, which in turn reduces the potential for rapid price changes in either direction.

Although a broader growth path for XRP might unfold slowly, the outcome of the SEC lawsuit will be crucial for Ripple in forging partnerships with major banks like Bank of America, Citi, Merrill Lynch, and JPMorgan.

After the lawsuit is settled, these institutions might feel more inclined to work with Ripple or use their payment solutions. Additionally, new laws passed by Congress could further define the regulatory framework for crypto companies, benefiting Ripple and XRP.