This drop reflects a larger correction in the cryptocurrency market following notable gains last week, including Bitcoin’s rise past $73,000, a level not seen in seven months.

However, XRP’s price gains failed to keep up with this broader market momentum, peaking at just $0.5300 during the rally before slipping back. Despite past price surges, the token has not reached $1 for over two years, with each attempt stalling due to various factors, sparking ongoing speculation within the community.

In a recent post on X, the U.S.-based exchange Uphold, recognized for its supportive stance on XRP, stirred discussion with a question: what is the primary factor holding XRP back from doubling its price to $1? This question drew considerable engagement, with responses reflecting a range of theories and concerns.

Community Insights on XRP’s Underperformance

Several prominent voices within the XRP community weighed in on Uphold’s post. Community member Hugh Morris suggested that internal forces are suppressing the digital asset’s growth, saying, “The switch has yet to be flipped.”

Others see the issue as rooted in low transaction volumes. X user Timothy Michael, for instance, attributed XRP’s underperformance to insufficient trading activity on the XRP Ledger (XRPL). This point, however, appears to contrast with Ripple’s latest quarterly report, which indicated a 99% increase in XRPL transactions on a quarter-over-quarter basis.

Another contributor, known as “WallStreetBulls,” argued that the introduction of an XRP/RLUSD trading pair could help the token’s price break through to new levels. He speculated that once XRP is listed with RLUSD, a soon-to-be-launched stablecoin, the price might surge, possibly reaching $20 or even $30 if paired options like XRP/BTC, XRP/USDT, and XRP/USDC are removed.

Yet, others are skeptical, questioning whether adding this trading pair alone would have a substantial enough effect to trigger a meaningful rally for XRP.

Ripple’s chairman, Chris Larsen, has also drawn attention to XRP’s recent performance. Some users argue that XRP donations made by Larsen to fund Kamala Harris’s campaign could be contributing to a negative perception of the token.

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SEC Lawsuit’s Impact on XRP’s Market Performance

Ripple’s ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC) continues to loom large over XRP’s market prospects. The regulatory uncertainty surrounding the case remains a key factor, with Ripple acknowledging in its recent quarterly markets report that the SEC lawsuit directly impacts XRP’s value.

Ripple’s report specifically noted that the ongoing legal challenges from the SEC are an influential barrier to achieving higher price targets for XRP.

The lawsuit has made some investors reluctant and, for some, cast a shadow over XRP’s potential. The regulatory ambiguity hampers market confidence, limiting the token’s appeal and slowing adoption. While the SEC lawsuit remains unresolved, XRP’s price appears likely to remain volatile.

The Road Ahead for XRP: Is $1 Achievable?

At the time of writing, XRP trades at $0.5106, a significant distance from the elusive $1 mark, which it last reached in 2021. To reclaim this level, the token would need to rise by an additional 95.8%—a challenging task given the current conditions.

Ripple’s stance on the lawsuit, community concerns over volume and sentiment, and macroeconomic pressures all weigh on XRP’s outlook. Until these barriers are resolved or alleviated, the token’s path to $1 will likely face further hurdles, though its community remains hopeful for a breakthrough.

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This speculation stems from the SEC’s recent filing that challenged Ripple’s proposed settlement figure of $10 million for alleged violations of securities laws.

Read Also: Here Is XRP Price If It Grabs 10% of the Entire Crypto Market Cap 

SEC Counters Ripple’s Settlement Proposal

In the recent response, the SEC moved to weaken Ripple’s argument for a significantly reduced penalty. The SEC highlighted key differences between the case against Ripple and previous enforcement action against Terraform Labs (TFL), the company behind the imploded Terra blockchain.

Ripple had previously referenced the $420 million penalty levied against TFL to support its case for a lower fine via a filing submitted to the Southern District of New York.

However, the SEC pointed out that TFL’s situation was distinct. Unlike Ripple, TFL is bankrupt and has ceased operations. Additionally, TFL agreed to significant investor compensation as part of its settlement agreement.

The SEC clarified that Ripple has not agreed to such terms, rendering the comparison irrelevant. Moreover, the SEC contested Ripple’s interpretation of TFL’s penalty amount. According to the SEC, the actual penalty constituted roughly 11.7% of TFL’s $3.5 billion in profits derived from its illegal conduct, not 1.27% as Ripple had argued.

SEC’s Calculations Spark Speculation

The SEC’s argument regarding the 11.7% ratio has fueled speculation within the XRP community. Some community members suggest the SEC may be willing to reduce its initial $2 billion penalty demand against Ripple.

This speculation is further bolstered by the SEC’s emphasis on the disgorgement of $876.3 million in profits earned by Ripple through the alleged sale of unregistered securities. According to the SEC’s calculations, applying the 11.7% ratio to this figure results in a potential civil penalty of approximately $102.6 million.

XRP Price Target After Settlement

Based on the interpretation that the SEC is now seeking a $100 million settlement, some XRP community members believe a resolution is imminent. The founder of Humanitarian Trust Compliance Services predicts a final settlement amount between $50 million and $62.5 million.

Furthermore, he speculates that a settlement could propel the price of XRP to $1.375, up from its current trading price of around $0.492.

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Read Also: Envisioned $1,896 Per XRP After Ripple’s ISDA Membership Sets Off Community Response

Experts Caution Against Misinterpretations

While Ripple’s Chief Legal Officer, Stuart Alderoty, previously hinted that the SEC might have reduced its initial demand based on the recent filing, prominent XRP community figures like Moon Lambo have advised caution. They argue that a close examination of the SEC’s wording does not support this interpretation.

SEC lawyer Marc Fagel agrees with this assessment, emphasizing that the idea of a reduced settlement amount is a misconception. The legal battle between Ripple and the SEC is ongoing, and the final settlement figure or court ruling is yet to be determined.

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Times Tabloid is not responsible for any financial losses.

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