Ripple’s XRP, a cryptocurrency designed for faster international payments, has faced an uphill battle. The ongoing lawsuit by the US Securities and Exchange Commission (SEC) accusing Ripple of selling unregistered securities has been a major roadblock, hindering XRP’s growth even during periods of broader market optimism.
However, recent developments suggest a potential turnaround. Despite a generally bearish market, XRP has seen significant gains. Over the past week, it’s up 10.4%, with even more impressive jumps in the 14-day (38.4%) and monthly (23%) charts.
The key factor driving this optimism? The potential conclusion of the SEC lawsuit. Ripple CEO Brad Garlinghouse and attorney Fred Rispoli both believe a resolution could be imminent, possibly by the end of July 2024. A positive outcome for Ripple would remove a major cloud hanging over XRP, likely triggering a price surge.
Another potential catalyst is a possible interest rate cut by the US Federal Reserve. With inflation showing signs of cooling, traders are anticipating a cut sometime this year. This could incentivize investors to seek higher returns in riskier assets like cryptocurrencies, potentially boosting XRP’s value.
Analysts also point to XRP’s underperformance compared to other crypto assets year-to-date. They believe XRP is undervalued and poised for significant gains if a broader bull market emerges. Given its current position as the eighth-largest cryptocurrency by market capitalization, an influx of funds could propel XRP past the coveted $1 mark.
Reaching $1 at current prices would require a price increase of roughly 66.6%. While not a guarantee, the potential conclusion of the lawsuit, a possible interest rate cut, and XRP’s current undervalued state all paint a picture of a cryptocurrency with room for significant growth in the remaining months of 2024.
