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This major factor could propel $XRP price for a dramatic explosion to unprecedented levels in the near future.
Despite recording a low performance this year, $XRP has continued to attract attention among crypto investors. Currently changing hands at $0.5235, $XRP has lost 15.6% of its value year-to-date (YTD) and 16.7% in the past three months.
SEC v. Ripple Appeal Tanks $XRP Price
This collapse is likely due to the SEC v. Ripple lawsuit entering the appeal phase. As observed earlier this month, $XRP was trading around $0.60 before the SEC filed its notice of appeal on October 2. A few hours after submitting the filing, $XRP’s price crashed by 15% to $0.51.
While the appeal could linger until 2026, several analysts like Crypto Pal remain confident about a potential price explosion for the coin.
The expert suggested that $XRP made a remarkable move in August that saw it break out of a seven-year trendline. Even though it experienced a significant dip over the weekend fueled by the Tether report, Pal characterized this move as a retest of the breakout.
$XRP Legal Clarity Could Propel $XRP For a Massive Price Surge
While several analysts have remained confident about a significant spike for $XRP, we have highlighted a major factor that could propel the Ripple-affiliated token’s value upward in the near future.
$XRP’s legal clarity remains the major factor that could trigger an explosion in the coin’s price. Recall that $XRP, which was once deemed a security by the SEC in 2020, received legal clarity on July 13, 2023, in the SEC v. Ripple lawsuit.
At the time, the ruling judge Analisa Torres declared that $XRP in itself is not a security, ending the multi-year debate about the coin’s regulatory status.
Interestingly, the SEC accepted the $XRP non-security status ruling, confirming that the coin is nothing but “a computer code with no inherent value.” Furthermore, the SEC affirmed the decision this month by refusing to challenge $XRP’s non-security status on appeal.
With $XRP’s non-security status uncontested, this could trigger more retail and institutional adoption of $XRP, potentially leading to a price boost.
Other Factors That Could Boost $XRP’s Value
Besides $XRP’s non-security status, there are other factors that could also 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 fiats for cross-border settlements.
Since the inception of the payment solution, multiple financial institutions have leveraged $XRP through ODL to move value. This solution offers cost-effective, high-speed, and seamless payments. As Ripple continues to partner with more financial institutions, demand for $XRP could soar.
Positive Community Sentiment
Despite its entanglement in the SEC v. Ripple lawsuit, $XRP has continued to receive positive sentiment among its community members.
Its dedicated community members actively promote the coin on social media platforms. This positive sentiment could help $XRP stay in the limelight, attracting new investors to the coin and also boosting its price.
$XRP ETFs
The potential launch of $XRP spot exchange-traded fund (ETF) is also expected to positively impact $XRP’s price. Bitwise and Canary Capitals filed with the SEC to launch two $XRP ETFs earlier this month.
Furthermore, Grayscale Investments also applied to the regulator to convert its Digital Large Cap Fund, which contains a basket of assets like $XRP, to a spot-based ETF. The potential approval of the fund could lead to a significant inflow of capital into the $XRP ecosystem, dramatically boosting the coin’s price in the future.
The aforementioned factors could trigger an explosion in $XRP price in the near future, especially in the second phase of the bull run.