XRP’s failure to reclaim its all-time high from January 2018 has discouraged many investors. However, the 2024 bull run could bring a change. A prominent crypto analyst, XRP Captain (UniverseTwenty), recently made a bold prediction, suggesting that XRP could reach $130 by the end of the current bull run.
While this prediction is not a guarantee, exploring the underlying factors that could contribute to such a significant price increase for XRP is worth exploring.
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The SEC Lawsuit
A major hurdle for XRP’s price growth has been the ongoing lawsuit by the U.S. Securities and Exchange Commission (SEC). The SEC sued Ripple in December 2020, alleging that the company’s XRP sales were unregistered securities sales.
The court ruled in July 2023 that XRP itself is not a security, and non-institutional XRP sales are not securities offerings. The lawsuit is currently in the remedies phase to determine an appropriate penalty for Ripple’s institutional XRP sales.
The end of the lawsuit could lead to increased institutional investment in XRP. Increased demand from institutions, traditionally known for their risk-averse nature, could significantly bolster XRP’s price. An ex-Ripple director also stated recently that XRP will not climb significantly until the lawsuit ends.
Impact of a Market-wide Bull Run
There is a strong correlation between the flagship crypto Bitcoin and other digital assets, including XRP. Historically, significant price increases in Bitcoin have triggered price rallies across the cryptocurrency market, with altcoins like XRP often experiencing amplified gains.
Bitcoin climbed to a new all-time high in March this year, causing major rallies across the market. Although the momentum has stalled, the current bull run is not over, and many experts believe another major rally is coming.
If Bitcoin surges to new highs, it’s reasonable to expect a positive spillover effect on XRP due to increased investor confidence.
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XRP’s Utility
Beyond the ongoing legal battle and market forces, XRP’s utility within the XRP Ledger and Ripple’s cross-border payment systems holds promise for long-term price appreciation. Ripple runs a global payment network designed to facilitate faster and cheaper international transactions compared to traditional banking systems.
Ripple’s influence in the global financial market is growing, and financial institutions can leverage XRP to provide liquidity for cross-border payments, potentially leading to increased demand for the token as adoption grows.
Despite the bullishness of many analysts, the possibility of XRP reaching $130 by the end of the bull run hinges on multiple factors
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Times Tabloid is not responsible for any financial losses.
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