Benzinga - Pro-XRP lawyer John Deaton on Saturday said he expected Ripple's native token (CRYPTO: XRP) to break $1 after a ruling determined that it is not considered security in certain circumstances.
What Happened: In a post on social media platform X (formerly Twitter) by a user named Moon Lambo regarding the slow price gains of digital currencies this year.
Deaton, known for his advocacy of XRP, responded to the post, acknowledging that some investors may be disappointed with the price movement.
However, he clarified that his expectations were not based on the belief that XRP would reach a new all-time high after the ruling but he did anticipate the price of XRP to surpass the resistance level of $1.
He said, “It’s all about expectations. Unless we were in a full bull market – led by Bitcoin (CRYPTO: BTC) – I never believed XRP would hit an ATH, even after a good ruling, and I said that when asked about my expectations on price (although I did expect it to break $1 tbh). But until Bitcoin breaks its ATH, I don’t expect anything else to.”
It's all about expectations. Unless we were in a full bull market – led by #Bitcoin – I never believed XRP would hit an ATH, even after a good ruling and I said that when asked about my expectations on price (although I did expect it to break $1 tbh). But until #Bitcoin breaks… https://t.co/alMOGfHne6— John E Deaton (@JohnEDeaton1) August 5, 2023
Despite a surge of over 75% in XRP following the ruling, taking it to a peak of $0.84.
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Why It Matters: U.S. Judge Analisa Torres ruled that the sale of XRP tokens on exchanges and through algorithms does not constitute investment contracts, which was celebrated by token enthusiasts. The news caused many major cryptos to experience a sharp increase.
This ruling was a significant development in the legal battle between Ripple and the Securities and Exchange Commission (SEC).
The SEC alleged that Ripple engaged in unregistered sales of XRP, which the agency considers to be a security. This decision could set a precedent for other cryptocurrency companies facing similar legal challenges.
Price Action: At the time of writing, XRP was trading at $0.61, down 2.6% in the last 24 hours, according to Benzinga Pro.
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