XRP’s price could experience a dramatic surge in the near future, propelled by a major factor. Despite a decline in value this year, XRP continues to attract the attention of crypto investors, currently trading at $0.5235. It has experienced a year-to-date loss of 15.6% and a 16.7% decline in the past three months.
The reason behind this decline can be attributed to the ongoing SEC v. Ripple lawsuit, which has now reached the appeal phase. When the SEC filed its notice of appeal on October 2, XRP’s price plummeted by 15% from $0.60 to $0.51.
However, despite the uncertainty surrounding the appeal, analysts such as Crypto Pal remain optimistic about a potential price explosion for XRP. Crypto Pal highlights a remarkable move made by XRP in August, where it broke out of a seven-year trendline. The recent dip in price, influenced by the Tether report, is seen as a retest of this breakout.
One major factor that could significantly boost XRP’s value is its legal clarity. In the SEC v. Ripple lawsuit, XRP was deemed a security by the SEC in 2020. However, on July 13, 2023, the ruling judge Analisa Torres declared that XRP is not a security, putting an end to the long-standing debate about its regulatory status. The SEC accepted this ruling, confirming that XRP is merely a computer code with no inherent value. The SEC’s refusal to challenge XRP’s non-security status on appeal further solidifies this clarity. With this uncontested non-security status, XRP could see increased adoption by both retail and institutional investors, leading to a surge in price.
Aside from legal clarity, there are other factors that could contribute to a significant increase in XRP’s value. Ripple’s payment solution, Ripple Payments (formerly known as ODL), utilizes XRP as a bridge currency for cross-border settlements. This cost-effective and efficient solution has been adopted by numerous financial institutions, and as Ripple continues to partner with more institutions, the demand for XRP could skyrocket.
Positive sentiment within the XRP community also plays a role in boosting the coin’s price. Despite the SEC lawsuit, community members actively promote XRP on social media platforms, keeping it in the spotlight and attracting new investors.
The potential launch of XRP exchange-traded funds (ETFs) is another factor that could positively impact XRP’s price. Bitwise and Canary Capitals have filed with the SEC to launch two XRP ETFs, and Grayscale Investments has applied to convert its Digital Large Cap Fund, which includes XRP, into a spot-based ETF. If approved, these ETFs could bring a significant influx of capital into the XRP ecosystem, further boosting its price.
Considering these factors, an explosion in XRP’s price is highly possible, especially during the second phase of the bull run. However, it’s important to note that this article is for informational purposes only and should not be considered financial advice. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.