As the crypto market continues to trade in turbulence, XRP, like BTC, ETH and other cryptocurrencies, has become ensnared in the volatility crisis, with investors now concerned about its future trajectory.
Notably, despite positive developments in the past year, the fifth-largest cryptocurrency by market capitalization has continued to plunge and is currently down roughly 74% from its all-time high.
Despite this uncertainty, well-known crypto analyst Zack Rector has outlined three pivotal factors that could drive XRP to new heights. On Monday, the analyst underscored the significance of the court denying an appeal by the U.S. Securities and Exchange Commission (SEC) in its ongoing tussle with Ripple, citing it as one of the catalysts with the potential to drive XRP prices to greater heights.
For context, it’s worth noting that after Ripple’s significant victory on July 13, 2023, in their legal battle against the SEC regarding XRP’s market classification, the SEC swiftly countered with a motion for an interlocutory appeal. They aimed to contest the decision, contending that this appeal was essential to thoroughly address potential violations by Ripple and its leadership.
Industry experts have stressed that the outcome of this appeal could have ramifications extending beyond Ripple. It might also significantly influence other ongoing SEC enforcement actions involving prominent entities like Coinbase and Binance.
In his tweet, Zack also highlighted the potential positive impact on XRP’s price if a resolution is reached between the SEC and Ripple. A successful settlement could introduce clarity regarding XRP’s position and classification within the broader cryptocurrency sphere.
Furthermore, the analyst envisaged the potential adoption of XRP by US banks and financial institutions utilizing Ripple’s On-Demand Liquidity (ODL) system as another key driver for a price surge. Notably, the July ruling clarified by affirming that XRP sales to institutional investors should not be classified as securities, fostering optimism regarding ODL’s adoption within the United States.
That said, while some anticipate a “retail pump” with the potential to drive XRP to around $12, others believe in the possibility of a “utility pump” propelling XRP to a minimum of $100. However, the timing and extent of these potential surges remain speculative, with pro-Ripple lawyer John Deaton reminding investors in a Sunday tweet that “no one knows what’s going to happen next until it happens.”
XRP was trading at $0.5109 at press time after a 0.74% drop in the past 24 hours, per CoinMarketCap data.