XRP Faces Short-Term Volatility as Legal Uncertainty Grows, Analyst Warns of Market Fluctuations

As legal uncertainty surrounding Ripple’s XRP persists, analysts warn of potential price fluctuations. Regulatory developments could cause XRP to trade between $0.50 and $0.80 by year’s end, driven by market hesitation and the U.S. regulator's recent appeal.

XRP Volatility Expected to Rise as Legal Appeal Fuels Uncertainty in Ripple Case, Analyst Says

According to a crypto analyst, the most recent appeal by the United States regulator in its case against blockchain payments firm Ripple may further encourage market participants to adopt a more risk-averse stance toward XRP in the short term.

The comments are made even though the most recent filing does not explicitly challenge the ruling that XRP is not a security. The appeal requested that the court reconsider its judgments concerning Ripple's XRP sales on exchanges and personal XRP sales by Ripple CEO Brad Garlinghouse and co-founder Chris Larsen.

The analyst believes that legal uncertainty could increase the volatility of XRP's price, potentially causing the asset to fluctuate within a range of nearly 50%.

XRP Price May Fluctuate Between $0.50 and $0.80 Amid Regulatory Uncertainty, Analyst Predicts

According to Bitget principal analyst Ryan Lee, “XRP’s price is likely to fluctuate between $0.50 and $0.80 by the end of the year, though this projection is highly contingent on regulatory developments and shifts in sentiment, particularly within the U.S. market.”

“This hesitation could translate into short-term price volatility for XRP, as the market waits for more concrete results.”

The most recent instance of XRP surpassing the $0.80 threshold occurred in March 2022. TradingView data shows the most outstanding price this year was $0.71, reaching that level in March.

XRP is currently trading at $0.55 at the time of publication.

Stuart Alderoty, Ripple's chief legal officer, recently stated that the briefing procedure will continue until July 2025.

Lee suggested that the outcome could significantly influence the price of XRP.

“A favorable ruling or increased international support for Ripple could lead to a notable price increase for XRP. On the other hand, an unfavorable outcome may push the price downward,” Lee wrote.

“The appeal introduces further regulatory ambiguity, particularly within the U.S. cryptocurrency sector. As the final legal outcome remains uncertain,” Lee added, investors may be more cautious.

Tim McCourt, senior managing director at CME Group, stated that the initial significant step toward XRP exchange-traded funds (ETF) had been taken on October 16, according to Cointelegraph.

“We do have an XRP reference rate and a real-time index, which is a first step in building out this ecosystem,” McCourt stated.