Ripple has submitted a letter to the SEC, urging clarity on when a token should lose its security label—a move that could strengthen XRP price predictions.
While XRP has reentered the “best crypto to buy” conversation with the Ripple SEC litigation nearing its end, ambiguity remains following SEC Commissioner Hester Peirce’s recent “New Paradigm” speech.
Ripple’s letter—shared on X by CLO Stuart Alderoty—directly responds to the pivotal question posed in the speech: “When does a digital asset separate from an investment contract?”
Ripple Addresses Question On Token’s Security Classification
Responding to the question, Ripple drew on existing securities law analysis from prominent legal experts, such as Lewis Cohen et al.
In that analysis, Cohen argued that the current U.S. investment contract law does not classify routine transfers of most fungible crypto assets in secondary markets as securities.
The letter emphasised Judge Analisa Torres’ landmark ruling, which found that XRP itself is not a security even though certain institutional sales had been investment contracts.
Ripple reminds the Commission that secondary-market trading of XRP—blind order-book sales in particular—has already been judicially blessed as non-securities activity.
Commentators highlight the industry-wide implications of Ripple’s argument, citing previous “static” interpretations of securities laws for cryptocurrencies as barriers to innovation.
XRP Price Analysis: Is XRP About to Explode?
While the market reaction to the letter has been muted, price action is likely to be defined by the breakout from the falling wedge pattern that has defined the multi-month XRP price downtrend.
XRP / USDT 1-week chart, falling wedge breakout. Source: TradingView / Binance.Momentum has faltered post-breakout, with the XRP price now approaching the pattern’s former resistance as support. Crossing below this could invalidate the pattern completely.
If momentum continues, the pattern sets a breakout target around $4 before the end of the year, representing a potential 70% surge from current prices.
This outlook is supported by the MACD, en route to form a golden cross, passing above the signal line. The setup on the weekly time frame often suggests a longer-term uptrend is forming.
In the meantime, buying pressure could persist until the 0.5 Fib retracement level—a common bottom for corrections—around $2.
More so, the RSI holds in bullish territory above the neutral line at 52—buying pressure continues to lead higher timeframes, though the balance remains delicate.
Looking further ahead, June 17 presents a major catalyst with the decision deadline on US XRP spot ETFs.
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