This major factor could cause the XRP price to dramatically explode to unprecedented levels in the near future.
Despite posting poor performance this year, XRP continues to gain traction among crypto investors. Currently trading at $0.5235, XRP has lost 15.6% of its value year-to-date (YTD) and 16.7% over the past three months.
SEC vs. Ripple Appeal Tanks XRP Price
This breakdown is likely due to the SEC v. Ripple case entering the appellate stage. As observed earlier this month, XRP was trading around $0.60 until the SEC filed its notice of appeal on October 2nd. Hours after the application was submitted, the price of XRP fell by 15% to $0.51.
Although this fascination could last until 2026, several analysts like Crypto Pal remain confident in the coin’s potential for a price explosion.
The expert suggested that XRP made a surprising move to break out of its seven-year trend line in August. Despite experiencing a significant drop over the weekend spurred by the Tether report, Pal characterized the move as a retest of the breakout.
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XRP Legal Transparency Could Promote XRP Price Rise
While some analysts remain confident in XRP’s significant appreciation, we have highlighted the key factors that could increase the value of Ripple-related tokens in the near future.
XRP’s legal clarity remains a major factor that could cause the coin’s price to explode. Recall that XRP, once considered a security by the SEC in 2020, received legal clarification in the SEC v. Ripple case on July 13, 2023.
At the time, sentencing judge Annalisa Torres declared that XRP itself was not a security, ending years of debate over the coin’s regulatory status.
Interestingly, the SEC accepted XRP’s non-security status ruling, confirming that the coin is nothing more than “computer code with no inherent value.” Additionally, the SEC rejected a challenge to XRP’s non-secure status in an appellate court earlier this month, upholding the decision.
Since XRP’s non-security status is indisputable, this could further encourage XRP adoption by retailers and institutions, leading to higher prices.
Other factors that could increase the value of XRP
Besides XRP’s non-security status, there are other factors that can lead to a dramatic spike in the coin’s price. They include:
payment utility
Ripple’s efficient payment solution ODL (now Ripple Payments) utilizes XRP as a bridge currency between two fiat currencies for cross-border payments.
Since the inception of the payments solution, multiple financial institutions have leveraged XRP to move value through ODL. This solution provides cost-effective, fast and seamless payments. As Ripple continues to partner with more financial institutions, demand for XRP is likely to skyrocket.
positive emotions in the community
Despite being embroiled in the SEC vs. Ripple lawsuit, XRP continues to receive positive reviews among community members.
Its enthusiastic community members actively promote the coin on social media platforms. This positive sentiment could help XRP stay in the spotlight, attracting new investors to the coin and pushing up the price as well.
XRP ETF
The possible launch of an XRP Spot Exchange Traded Fund (ETF) is also expected to have a positive impact on the price of XRP. Bitwise and Canary Capitals filed with the SEC to launch two XRP ETFs earlier this month.
Additionally, Grayscale Investments has applied to regulators to convert its digital large-cap fund, which includes a basket of assets such as XRP, into a spot-based ETF. The possibility of the fund being approved could lead to a large influx of capital into the XRP ecosystem, leading to a dramatic increase in the price of the coin in the future.
The aforementioned factors could cause an explosion in XRP price in the near future, especially during the second phase of the bull market.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. We encourage our readers to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
