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XRP price has been hovering around $1 for quite some time, will it still revive in the SEC lawsuit?

XRP price has been hovering around the $1 mark for quite some time. The market’s seventh-largest altcoin recorded a yearly high of $1.96 in April and has never moved above-said threshold since. People from the community have begun to attribute the concept of “stablecoin” to it.

During writing, during a bull market, because BTC sometimes rose to $50,000, XRP was still stuck in the $1 zone.

xrp-price-has-been-hovering-around-1-for-quite-some-time-will-it-still-revive-in-the-sec-lawsuit

XRP/USD 4-hour chart | Source: TradingView

Evaluating the long and short term prospects of XRP price

Since the lawsuit between Ripple and the SEC began, most days have been bleak for XRP. However, the hope of a revival is not entirely superfluous at this stage.

XRP’s Sharpe Ratio was in late fall. Typically, a drop in this metric indicates that HODLer tokens are not fetching a return commensurate with the risk they are taking. In mid-August, the reading was as high as 9, but the number hovered around two by the end of the month.

On any given day, participants tend to exit the market in such situations. However, community members did not let this altar operate in a dry state.

xrp-price-has-been-hovering-around-1-for-quite-some-time-will-it-still-revive-in-the-sec-lawsuit1

Source: Messari

The XRP community has been quite sincere about the situation. In short, they’ve been accumulating and buying the dip. The mean coin age metric supported the narrative mentioned above. This coin age metric gauges the average age of all the coins in circulation.

The non-movement of the tokens highlights that HODLers have faith in the long-term prospects of XRP. Further, the dormant circulation data also supported that the old XRP has not been moving of late.

xrp-price-has-been-hovering-around-1-for-quite-some-time-will-it-still-revive-in-the-sec-lawsuit3

Source: Santiment

However, the short-term outlook for XRP does not seem appealing. Traders have been staying away from this token at the time of writing. This behavior can be attributed to the non-volatile environment.

Diminished trader interest implies that new money is not flowing into the market and that the short-term price of XRP will continue to cycle within the same $1 bracket for the foreseeable future.

However, keeping the sentiment of HODLers, XRP’s distant future seems more or less assured. Also, as the incident unfolds in the coming days, one can expect the price of alts to react positively.

There was a time when Cardano was in a similar position to XRP, and people ascribed the same concept of stablecoin. However, over time, the altar proved it wrong and permanently moved forward without looking back. Therefore, it is only a matter of time before XRP does something similar.

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