XRP’s Hidden Potential
XRP (CRYPTO: XRP) has been a top-performing crypto, up over 54% in the first nine months of the year. Ripple’s significant legal win against the SEC in July handles much of those gains.
I expect XRP to experience a major value breakout based on current momentum and speculation, according to analysts. There’s speculation that XRP could increase in value by over 750%. What are the chances of this breakout happening? For XRP to skyrocket in value, three crucial factors must occur. I suggest we analyze this.
SEC settlement
Above all, Ripple must conclude its court case with the SEC. As long as there is no final settlement with the SEC, the company will face ongoing regulatory risk. It will be challenging for them to progress with new strategic initiatives for their Ripple payment platform.
Many analysts are portraying the favorable court ruling in July as a complete victory for XRP, which is why I’m concerned. That was not the case. It was a partial win. The SEC is considering appealing the decision, which could restart the court case. Unlocking the true value of XRP depends on a final court settlement with the SEC, from my perspective.
We just secured a major client in the U.S. market.
Because of the lengthy court case with the SEC since December 2020, XRP has shifted its attention to international markets. This has resulted in many impressive client victories in emerging markets, where the Ripple payment platform could have its most significant impact. Ripple has experienced several promising advancements, such as initiatives involving cross-border payments and Central Bank Digital Currencies (CBDCs). These factors could increase the value of XRP in the long run.
However, what has been missing is a major client win in the U.S. market. Active 1: While there have been signs that U.S. market participants are growing more trusting of Ripple, we still haven’t seen a major U.S. bank embrace the XRP crypto token for cross-border payments or liquidity management.. Yes, Western Union (NYSE: WU) did just announce a new partnership with XRP in August, but that sounds like much more of an experimental pilot project than an actual real-world implementation. A big U.S. client win would prove that XRP is really back.
Ripple IPO
Finally, people are buzzing and speculating about a potential IPO for Ripple.. When Ripple hosted its “SEC victory party” in New York at the end of September, this only fed the hype machine about an upcoming IPO. Some analysts said that Ripple could be the next Coinbase Global (NASDAQ: COIN) in terms of a high-profile crypto company going public.
This immediately led to speculation about what a Ripple IPO might mean for the price of the XRP token. Some suggested it might lead to a 20-fold surge in the price of XRP, taking the crypto from $0.50 to $10 almost overnight.
While cash from a Ripple IPO would undoubtedly help the company build out its new XRP-related initiatives worldwide, there’s a long way to go before that happens. As noted above, Ripple and the SEC are still at legal loggerheads. So is the SEC really going to approve an IPO filing from Ripple?
New XRP price target?
Based on the above, I think the market might get ahead of itself in predicting how XRP could skyrocket in value. Case in point: Over the past two months, XRP has almost entirely given up its gains from the SEC “victory” this summer. On July 11, XRP was trading at $0.48. On Sept. 30, XRP was trading at $0.52.
That being said, I think the three factors described above could become huge catalysts for long-term growth. I’m taking a wait-and-see approach for now, but as soon as more clarity emerges in the SEC court battle, it could be time to accumulate XRP once again.
