Ripple Labs [XRP] looked upbeat about its chances in the two-year-long litigation over the status of XRP in its fourth-quarter financial report, ahead of a likely conclusion in the SEC complaint. According to the report:
“After two years of fighting this lawsuit on behalf of the entire crypto industry and American innovation, the case is fully briefed and Ripple is proud of its defense and feels more confident than ever as it awaits the Judge’s decision.”
Ripple also accused the Securities and Exchange Commission (SEC) of regulation by enforcement.’
On-chain activity on the XRP ledger [XRPL] has decreased year over year. While the number of wallets decreased by about 63%, the overall transaction count decreased by 18% to 106 million from around 130 million in Q4 2021.
The same set of measures, however, increased over the prior quarter.
Ripple also emphasized the growth of its on-demand liquidity (ODL) client base as it formed new relationships in the European and African regions. Despite this, the platform’s cryptocurrency, XRP, had a 27% drop in sales from the previous quarter.
According to the research, XRP’s trading volume fell 11% to slightly more than $64 billion from $72.65 billion in Q3.
The quarterly report may be detrimental to XRP investors’ interests. According to CoinMarketCap statistics, the currency was down about 5% at press time, with a comparable shrinkage in its market cap.
This followed XRP’s strong start in 2023, during which it gained 18% and recaptured its pre-FTX market worth of $20 billion.
Market indicators issued cautionary warnings. The Relative Strength Index (RSI) fell drastically from recent highs to its neutral level. Furthermore, the Awesome Oscillator (AO) was in red, while the Moving Average Convergence Divergence (MACD) exhibited a bearish crossing, suggesting that XRP might have a significant correction.
At press time, the weighted sentiment for XRP was low, having reached the positive region after a week of negativity gripping investors. In addition, network growth and daily active addresses have also slowed, suggesting minimal network activity.
The outcome of the SEC’s action against Ripple regarding the status of XRP might have far-reaching consequences for the cryptocurrency sector as a whole. The regulations regulating the classification of cryptocurrencies as commodities or securities remain murky.