XRP soars 18% on back of CME’s new indices and possible Ripple lawsuit end. Read CoinChapter.com on Google News
NAIROBI (CoinChapter.com) — CME Group announced the launch of real-time indices and reference rates for XRP in collaboration with CF Benchmarks. Starting July 29, these benchmarks aim to provide transparent pricing for XRP, addressing the market’s demand for reliable price feeds among institutional investors.
CME and CF Benchmarks launch XRP index.
Ripple CEO Brad Garlinghouse emphasized the significance of this development on social media. He described the new XRP benchmarks as a critical step toward institutional crypto products. Garlinghouse underscored the importance of having a trusted benchmark reference rate, reinforcing institutional confidence in XRP.
Disagreement Over Ripple’s Potential Penalty
XRP’s price revival comes amid heightened expectations that the prolonged lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC) is nearing its conclusion. The legal battle, which reached its trial stage in April, has seen American attorney Fred Rispoli predict an outcome could occur as early as this month.
Rispoli pred i cted the lawsuit could end by July last.
He argued that the resolution would likely include a penalty of no more than $25 million for Ripple and no disgorgement.
A major contention in the lawsuit is the size of Ripple’s potential fine. The SEC initially sought a $2 billion penalty, accusing Ripple of conducting an unregistered securities offering via XRP sales. Ripple opposed this, insisting on a penalty no larger than $10 million.
The company compared its case to that of Terraform Labs, pointing out that direct allegations of fraud were only evident in the latter. Following this, the SEC softened its stance, proposing a $102.6 million penalty.
Ripple argued against this, noting that the penalty ratio to the gross profit of the violative conduct in the Terraform case was significantly higher. Applying this ratio to Ripple’s $876.3 million in gross profits resulted in a $102.6 million penalty, much larger than the $10 million Ripple suggested.
Analysts Predict Price Surge to $0.640 Soon
XRP’s price surged by 12.40% over the last 24 hours, reaching $0.51 at the time of writing. This increase extends to a weekly performance, with XRP jumping over 18%. The introduction of new indices by CME Group, in collaboration with CF Benchmarks, might have helped in renewing interest in the token.
These benchmarks are designed to provide transparent pricing for XRP, addressing the needs of institutional investors.
XRP/USD 1-day price chart. Source: CoinMarketCap
Crypto analyst Captain Faibik highlighted the potential for a bullish rally. He noted that XRP has broken out of a falling wedge pattern on the daily chart, potentially pushing its price to $0.640, where strong resistance is anticipated. This analysis aligns with the current market sentiment, suggesting further gains.
XRP/USD 1-day chart. Source: Captain Faibik
Analyst The Great Mattsby predicted a substantial long-term surge for XRP, envisioning a 60,000% increase by 2028. Despite the legal uncertainties surrounding Ripple, these predictions indicate significant potential for the cryptocurrency.
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