Ripple’s XRP has experienced a significant pullback after peaking at $1.35 during the latest crypto bull run but it looks like the cryptocurrency might be warming up for some more gains.

XRP is currently trading at $1.13 after a 3.68% drop in the last 24 hours at the time of this press, but its current price level is still registering a 2.46% weekly gain. The cryptocurrency has been affected by the market-wide correction that has taken place in the last two days, creating an opportunity for some more accumulation.

Source: Binance

The recent price correction pushed XRP below its 7-day moving average but the good news is that it is now oversold according to the RSI indicator. The price dip also presents a good entry point for traders looking to take advantage of potential upside when the bullishness resumes. The outflows in the crypto market were caused by institutional investors withdrawing funds to cover their short positions in the stock market after yesterday’s stock market uptick.

The status of the legal battle between the SEC and Ripple

The legal battle between Ripple and the SEC has been holding back XRP from achieving its true potential but it is currently in the tail end. The lawsuit’s outcome will trigger a selloff or heavy buying for XRP depending on the outcome. Fortunately, things seem to be leaning in favor of Ripple especially after reports that the U.S regulator erased documents that were sensitive to the case. The regulator reportedly failed to hand over internal documents despite judicial orders to do so.

Meanwhile, Empower Oversight, a non-profit organization based in Washington D.C recently called out the SEC for its suspicious approach to the Ripple lawsuit. The U.S regulator seems ill-prepared to win the case, thus giving Ripple the upper hand. Meanwhile, the blockchain company still claims fair use considering that it received a late notice from the SEC. These factors point towards a higher possibility that Ripple will win the legal battle.

What to expect if Ripple wins

A win for Ripple will be a huge catalyst for XRP in the short term and also in the long run. We might witness a massive upsurge in XRP’s buying volume after that because it will boost investor confidence while also encouraging more financial institutions to jump on board with Ripple’s On-Demand Liquidity (ODL) service.

Ripple previously hinted at plans of an ICO, which will likely happen not long after the lawsuit ends. This is because a public listing would make financial institutions more open to working with Ripple.  Meanwhile, ODL is expected to shift into high gear within the next two years and it will subsequently boost the demand for XRP, thus potentially contributing to better performance for the cryptocurrency.

The short-term and medium-term outlook

While the demand for XRP is expected to boost its long-term outlook, the current market conditions also look favorable. The cryptocurrency will likely ride the bulls if the market maintains the upward momentum, which means it is currently at an attractive entry point. The lawsuit is expected to drag on at least for a few more weeks or months but the legal proceedings that will take place between now and the lawsuit’s eventual end will weigh heavily on XRP’s performance.