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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.