Technical Glitch, Legal Limbo and ETF Delays Stall Bullish XRP Price Breakout

Key Takeaways

XRP surged to $2.4813 on May 11 amid ETF speculation but has since slid as BlackRock remained silent on SEC meeting discussions.

If the court grants the SEC’s motion to settle with Ripple, it could clear the path to XRP-spot ETF approvals.

XRP faced a critical turning point following a 10,000 XRP wallet glitch, leading to wild speculations.

A recent technical glitch involving a failed 10,000 XRP transaction, speculation over a potential XRP-spot ETF filing, and the legal limbo surrounding the conclusion of the Ripple vs. SEC case seems to have stalled the highly anticipated XRP price breakout.

XRP soared to a recent seven-week high of $2.4813 on Sunday, May 11, 2024, but hopes have quickly dimmed as BlackRock remains silent on the progress, if any, of its discussion about XRP with the US Securities and Exchange Commission (SEC). This fuels uncertainty and dashing hopes for the anticipated XRP price breakout, dragging the token back to $2.3293 before stabilizing.

Ongoing Legal Ambiguity

Despite Ripple CEO Brad Garlinghouse’s earlier statements suggesting the SEC would drop its appeal following Judge Analisa Torres’ 2023 ruling in favor of Ripple, the Commission has yet to vote on the matter formally.

This ongoing legal ambiguity weighs heavily on investor sentiment, stalling momentum despite broader optimism in the crypto market. The SEC’s decision remains a key catalyst for XRP price movement and the potential approval of a U.S.-based XRP-spot ETF. Garlinghouse clarified:

“We have reached an agreement with staff .… but the Commission hasn’t yet voted.” Crypto journalist Eleanor Terrett confirmed the delay, noting that the SEC’s next closed-door meeting on May 8 may finally result in a formal dismissal.”

Speculation over a potential XRP-spot ETF filing sent XRP soaring to a seven-week high of $2.4813 on Sunday, May 11. But hopes quickly dimmed as BlackRock (BLK) remained silent on whether it discussed XRP during its recent meeting with the SEC. That silence fueled uncertainty, dragging XRP to a low of $2.3293 before stabilizing.

Technical Hitch

On the other hand, a transaction marked on the XRPL as payment for a “Xaman Service Fee” was flagged during a routine swap operation but failed due to what was indicated as a lack of sufficient funds, and the transaction was labeled “UNFUNDED PAYMENT.”

While no funds were lost due to the failed transaction, the unusually high amount involved has raised concerns about the possibility of a software bug, potential manipulation, or a deep vulnerability within the XRP system. Some users speculated whether the incident was part of a coordinated effort to tarnish reputations or target projects critical of the XRPL ecosystem.

Legal Limbo

At the same time, despite the recent assurance by Ripple CEO Brad Garlinghouse himself, there is no light on the stalemate between Ripple Labs and the US Securities and Exchange Commission (SEC). Garlinghouse had previously suggested that the SEC would drop its appeal after Judge Analisa Torres’ 2023 ruling in favor of Ripple. Still, the Commission has yet to vote on the matter formally. Garlinghouse clarified:

“We have agreed with staff […], but the Commission hasn’t yet voted.”

Crypto journalist Eleanor Terrett confirmed the delay, noting that the SEC’s next closed-door meeting on May 8 may finally result in a formal dismissal. Unfortunately, the ongoing legal ambiguity weighs heavily on investor sentiment, stalling momentum despite broader optimism in the crypto market.

Conclusion

The XRP ecosystem remains at a pivotal crossroads, shaped by the convergence of legal, technical, and market forces. The ongoing events have severely tested investor confidence and reinforced their resilience and belief in XRP’s long-term vision. Whether or not the highly anticipated XRP price breakout happens soon, the XRP story seems to have just begun.

Frequently Asked Questions

What determines the price of XRP?

The price of XRP derives from various factors, but mainly from Ripple’s ability to work with institutions and from its ability to quickly and cost-effectively be exchanged for any currency or asset.