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The ongoing legal dispute between Ripple and US regulators could cause drastic price swings of up to 50% for Ripple’s XRP cryptocurrency, an analyst has warned. The appeal revolves around Ripple’s XRP sales on exchanges and personal sales by company leaders, not the currency’s status as a non-security. The price fluctuation is largely dependent on the outcome of the regulatory situation. Also, the appeal is creating more regulatory uncertainty, giving rise to cautious investment behavior.

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The U.S. regulator’s latest appeal against blockchain payment company Ripple could see people becoming more hesitant to invest in XRP, a crypto analyst has said. This caution could be felt even though the appeal doesn’t question the previous ruling that XRP isn’t a security. The current appeal asks the court to review decisions around Ripple’s XRP sales on exchanges and personal XRP sales by Ripple CEO Brad Garlinghouse and co-founder Chris Larsen.

Due to this continuing legal dispute, XRP’s price could swing drastically. In fact, the analyst thinks it could fluctuate by almost 50%. XRP’s price could change a lot throughout the year, potentially varying between $0.50 and $0.80. But these predictions rely heavily on what happens with the regulation situation and how people feel about it, especially in the U.S. Bitget’s senior analyst, Ryan Lee, gave his take in a report on Oct. 18.

But remember, these changes could cause XRP’s price to jump around in the short-term as everyone waits for more concrete results. Last time XRP passed $0.80 was in March 2022, and its highest price this year was $0.71, which it hit back in March, TradingView data records. As of publishing, XRP was priced at $0.55.

Ripple’s main legal guy, Stuart Alderoty, claimed that this briefing process could likely stretch until July 2025. Depending on the final outcome, XRP’s price could be majorly impacted. If Ripple gets a good ruling or more international support, XRP’s price could see a nice bump. But if things don’t go well, the price could go down, said Lee.

Lee also noted that this appeal adds more uncertainty around regulation, especially in the U.S crypto space. This could lead investors to act more cautiously while the legal final decision remains unclear.

Just recently, Tim McCourt, senior managing director at CME Group, mentioned that the first major move for XRP exchange-traded funds (ETF) had been made. He said, “We do have an XRP reference rate and a real-time index, which is a first step in building out this ecosystem.”

Source: Cointelegraph