XRP (XRP-USD) is one of the top cryptocurrencies in focus for investors today. Over the past 24 hours, the coin has sunk more than 2% on additional XRP news surrounding parent company Ripple’s ongoing legal troubles with the U.S. Securities and Exchange Commission (SEC).
Ripple CEO Brad Garlinghouse carried out a rather interesting interview with Bloomberg yesterday. In the interview, Garlinghouse suggested that the ongoing battle with the SEC should be settled at some point this year. Additionally, he noted the “pivotal” impact the upcoming decision will have on the entire sector.
As one of the largest cryptos out there with a market capitalization of nearly $19 billion, this decision will certainly impact investors. However, there have been many who have suggested that any outcome — positive or negative — could be good for XRP, as uncertainty will be removed.
Of course, a positive verdict would go a long way to ensuring another leg higher, especially for those who have been invested in this project for some time.
Let’s dive into what investors may want to make of the recent commentary.
XRP News Does Little to Excite Investors Today
Much of today’s decline in XRP can likely be attributed to macro forces. The crypto sector overall is down roughly 4% at the time of writing. So, XRP’s decline of around 2% could be viewed favorably in this context.
Renewed discussion around the potential for a resolution to Ripple’s legal issues should spark more near-term interest in XRP relative to its peers. Such appears to be the case in today’s session, given the trading volume and relative price action of the cryptocurrency.
To me, XRP represents one of the most binary bets on a specific catalyst in the crypto sector right now. And, while Garlinghouse is right that this decision will impact most other coins and tokens as well, it will undoubtedly have a larger impact on XRP overall. Thus, for those who don’t like volatility, investors may want to avoid this large-cap crypto.
For traders, though, volatility can be a good thing, News flow will be important to watch. I’ll be keeping XRP on my watch list and provide updates as they arise.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
