As market commentators expect further XRP upsurge, seven events are capable of supporting this anticipated price uptick.
Notably, XRP has performed exceptionally well over the past seven weeks, soaring 283% in November and sustaining gains in December despite the latest broader market correction that has pushed it to the lower end of the $2 mark.
XRP now trades for $2.35, up 3.23% this morning, but down by more than 5% over the past seven days. Amid the ongoing pullback, analysts believe XRP’s upward push is still at its infancy. Here are seven key events could further propel XRP’s value once the uptrend resumes:
Launch of RLUSD
Ripple introduced RLUSD, a U.S. dollar-pegged stablecoin, on December 17, 2024. Ripple announced exchange partners like Bitso, Uphold, CoinMENA, MoonPay, and Archax, with plans for broader distribution.
This stablecoin, fully backed by U.S. dollar deposits, government bonds, and cash equivalents, aims to provide stability and liquidity within the market. The launch already positively impacted XRP’s price, catalyzing a surge to $2.7.
However, XRP has since corrected these gains amid the ongoing broader market pullback. While the RLUSD stablecoin might not directly impact XRP price in the future, Ripple CTO David Schwartz confirmed it could bolster liquidity, supporting price action.
Resolution of Ripple’s Legal Battle with the SEC
The Ripple vs. SEC lawsuit has lingered for four years. The most recent development saw District Judge Analisa Torres reduce the penalty against Ripple to $125 million, significantly less than the SEC’s initial $2 billion demand.
The SEC has filed a notice of appeal, indicating ongoing legal proceedings. However, some believe the forthcoming SEC leadership could throw away the case. A definitive resolution could remove regulatory uncertainties, potentially boosting XRP’s market position.
Approval of an XRP ETF
While the SEC has approved multiple Bitcoin ETFs, XRP-focused ETFs remain pending. Firms like Bitwise, Canary Capital, WisdomTree and 21Shares have filed for spot XRP ETFs, awaiting regulatory approval.
Notably, the approval of an XRP ETF could attract institutional investment, further enhancing liquidity and market confidence.
Onset of Altcoin Season
Altcoin season refers to a period when altcoins like XRP outperform Bitcoin. Market data suggests that a significant number of top altcoins have recently outperformed Bitcoin, signaling the onset of an altcoin season.
During such periods, assets such XRP often experience substantial price increases due to heightened investor interest and capital inflows. Market veteran Michaël van de Poppe has repeatedly teased the forthcoming alt season for this cycle.
#Bitcoin dancing on a crucial level.
If we lose $98K, then I'm assuming we'll see $90K and a probable substantial correction/crash across the #Altcoin markets.
After that -> big altseason. pic.twitter.com/p6ndrTQMw4
— Michaël van de Poppe (@CryptoMichNL) December 9, 2024
Departure of SEC Chair Gary Gensler
Gary Gensler, the current SEC Chair, is set to resign on January 20, 2025. His tenure has been marked by stringent regulatory actions toward cryptocurrencies.
His departure could lead to a shift in the SEC’s approach to crypto regulation, potentially fostering a more favorable environment for crypto assets like XRP. Trump has picked pro-crypto Paul Atkins as his replacement.
Inauguration of President Donald Trump
President-elect Donald Trump, who has been a vocal support of the crypto industry, is scheduled to be inaugurated as the 47th President of the United States on January 20, 2025. Ripple plans to contribute $5 million to the inauguration.
Industry leaders expect Trump’s administration to adopt a more crypto-friendly stance, which could lead to regulatory clarity and policies that support the growth of crypto assets, positively influencing XRP.
Establishment of Clearer Global Crypto Regulations
Globally, efforts are underway to create comprehensive regulatory frameworks for cryptocurrencies. In 2024, countries like Australia, the UK, Brazil, and South Korea have announced plans to introduce new regulations to provide clarity and protect investors.
Such developments can bolster market stability and encourage institutional participation, potentially benefiting XRP.
