As crypto markets continue to trade turbulently, XRP, along with BTC, ETH, and other cryptocurrencies, has been caught up in a volatility crisis, with investors currently concerned about its future trajectory.
Notably, despite the positive developments over the past year, the fifth-largest cryptocurrency by market capitalization continues to decline and is currently down about 74% from its all-time high.
Despite this uncertainty, prominent crypto analyst Zack Rector outlined three pivotal factors that could propel XRP to new heights. The analyst on Monday highlighted the importance of the court’s rejection of the U.S. Securities and Exchange Commission’s (SEC) appeal in the ongoing dispute with Ripple, raising the possibility that it could send XRP prices even higher. He mentioned that it is one of the hidden catalysts.
For context, it is worth noting that after Ripple won an important victory in its legal battle with the SEC over XRP’s market classification on July 13, 2023, the SEC quickly counterattacked with a motion for interlocutory appeal. They aimed to challenge the decision, arguing that the appeal was essential to thoroughly address potential violations by Ripple and its leaders.
Industry experts have stressed that the outcome of this lawsuit could have ramifications beyond Ripple. It could also have a significant impact on other ongoing SEC enforcement activities involving high-profile companies such as Coinbase and Binance.
In his tweet, Zack also highlighted that if a resolution is achieved between the SEC and Ripple, it could have a positive impact on the price of XRP. A successful settlement could clarify XRP’s place and classification in the broader cryptocurrency space.
Additionally, analysts predicted that the potential adoption of XRP by US banks and financial institutions using Ripple’s on-demand liquidity (ODL) system would be another major driver of the price hike. In particular, the July ruling clarified that XRP sales to institutional investors should not be classified as securities, fueling optimism about the adoption of ODL in the United States.
That being said, some people predict be “Retail Pump” Some believe it could push XRP to around $12, while others believe a “utility pump” could push XRP as low as $100. However, the timing and scope of these potential spikes remains speculative, as pro-Ripple lawyer John Deaton warned investors in a tweet on Sunday: “No one knows what’s going to happen next until it happens.”
XRP was trading at $0.5109 at press time, after declining 0.74% in the past 24 hours, according to CoinMarketCap data.