Wealth Advisor Reveals Why Ripple’s ODL Could Impact XRP Prices

Will Ripple's ODL affect XRP prices? Mickle, a well-known wealth advisor and market commentator, recently explained on X why he believes Ripple's ODL will affect XRP prices. His arguments contradict the claim that the buying and selling dynamics in ODL transactions cancel each other out.

Mickle highlights a crucial aspect

Mickle stressed that while some critics argue that the buy and sell transactions in ODL are neutral for the price of XRP, they miss a crucial aspect. In his opinion, this is the need for market makers to hold XRP reserves. Market makers who facilitate these transactions must accumulate XRP to ensure they can meet demand. As ODL transactions increase worldwide, the demand for XRP among market makers also increases, leading to higher accumulation of the token.

Mickle argues that this will naturally drive up the price of XRP. He further claims that ODL's global expansion will force even more market makers to hold XRP in their reserves. The increased demand, combined with the limited supply of XRP, should logically lead to upward pressure on the price.

Eri disagrees with Mickle’s view

Although Mickle is optimistic about the impact of ODL on the XRP price, Eri, a well-known figure in the XRP community, pointed out in a response that Ripple itself has stated in court documents that ODL transactions are largely demand-neutral.

The Ripple disclosure mentioned by Eri suggests that ODL transactions, which involve the simultaneous purchase and sale of XRP, do not significantly affect the price. This is because each ODL transaction involves the purchase and sale of the same amount of XRP within a short period of time, effectively neutralizing any impact on the token's market value.

Eri also emphasized that Bob Way, whom Mickle referred to in his argument, left Ripple before any significant changes were made to ODL's operational flow, and that therefore Ripple's current system for managing ODL transactions is different from the previous configuration.

Will the SEC appeal the Ripple case?

In light of recent developments, Mickle also shed light on Kraken's case, where the company suffered a major defeat against the SEC today. Ripple defeated the SEC in the district court, and if the SEC appealed the ruling, it would go to the Second Circuit Court of Appeals. And if the SEC took the Ripple case to the Second Circuit Court of Appeals, it could destroy its chances in all other ongoing cases, and its precedent would be a losing case for the SEC.

According to Mickle, the SEC may therefore be more cautious when appealing the Ripple case so as not to set a precedent that could weaken its position in other ongoing cases.