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- An analyst has mentioned three key factors that could propel the XRP price to a new height in the next market bull run.
- XRP extended its bearish run to 19 percent in the last seven days and 13 percent in the last 24 hours.
As crypto investors watch the next price movement of XRP with bated breath, an analyst has unveiled three crucial factors that could trigger the asset to its next bull run. The first, according to the analyst, is regulatory development. The long-standing legal battle between Ripple and the US Securities and Exchange Commission is known by all, and though Ripple has been awarded a partial victory regarding the security status of XRP, SEC has decided to appeal the ruling.
According to market data, XRP surged as high as $0.93 soon after the ruling, but the thought of a possibly successful appeal has affected market sentiment, forcing the asset to take a nosedive. The asset stands a chance of staging a comeback to trade at a single digit when there is a favorable resolution. However, any contrary ruling could push the price down the price curve.
In a recent Forbes report, Grzegorz Drozdz, a market analyst at Conotoxia, also cautioned that the Ripple vs SEC dispute has not ended yet, hence, the XRP future trajectory is not completely certain.
According to John Reed Stark, a former SEC official, a Republican victory in the U.S. presidential election could bring about more crypto-friendly policies and regulatory clarity within the region.
Given the partisan divide that has evolved regarding crypto, especially at the SEC, my take is that should a Republican get elected U.S. President in 2024, the slate of Republicans appointed to the SEC will likely: Decrease significantly the SEC’s crypto-enforcement efforts, probably filing mostly fraud cases, shifting efforts away from charging pure registration violations (such as the failure of a crypto-trading platform to register as an exchange, broker-dealer and clearing firm), etc.
More Determining Factors for the Next XRP Bull Run
Another factor that could propel XRP to a new price height is technological advancement within the Ripple ecosystem. According to the analyst, new integration such as the Flare Network implementation for smart contracts as well as interoperability with other blockchains could drastically increase the demand for XRP.
The last factor that could trigger a bull run is the sentiment around the entire crypto market coupled with the institutional adoption rate of XRP. On top of this, Ripple’s collaboration and partnership with industry giants could boost confidence around the utility of the asset, and contribute to price growth in the long run.
Drozdz, in his attempt to answer the question of whether XRP is a good investment, stated that while the asset currently has a positive outlook, the crypto market is known for its “crazy” upswing and unpredictability. He also advised prospective investors to carefully analyze their risk tolerance and financial goals before deciding to invest.
Investment decisions should be made with a clear understanding of the risks involved. For some, XRP could present an exciting opportunity. For others, it may not align with their risk appetite or investment strategy.
The current XRP price performance is very discouraging as the asset has declined by 19 percent in the last seven days to trade at $0.506803. As of press time, XRP was down by 13 percent in the last 24 hours.
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