XRP, the native cryptocurrency of the XRP Ledger, has managed to maintain its position above $0.50 per token on Friday as the world’s sixth-largest cryptocurrency by market capitalization aims to reignite momentum following a strong bullish run in the past three weeks. The XRP Ledger is a decentralized layer-1 blockchain protocol which debuted in June 2012 under US fintech company Ripple, with the purpose of revolutionizing cross-border payments and liquidity businesses.
Once valued at just under $0.52, XRP has since risen by over 2.0% on Friday and by more than 26% compared to its mid-May lows around $0.41. This change was fueled by positive developments in Ripple’s ongoing lawsuit against the SEC, allowing the cryptocurrency to surge beyond its 21 and 50-Day Moving Averages.
Although chart analysis suggests that XRP remains on track to retest its yearly high of around $0.58, there are no significant areas of resistance in its path beyond the mid-April highs near $0.55. Investor optimism regarding Ripple’s probability of securing a favorable outcome in the SEC lawsuit has also contributed to this growth.
In 10 days, the SEC must comply with the judge’s order to release documents relating to a speech made by former SEC Chairman William Hinman on cryptocurrencies. These documents are expected to reveal the SEC’s uncertainty regarding XRP’s status as a security during that time, possibly undermining the agency’s argument that Ripple issued XRP as a security.
Consequently, investors have shown increasing confidence in a positive outcome for Ripple, which could potentially boost the company’s payment business and generate greater demand for XRP. The XRP Ledger has also experienced an uptick in activity recently, as pointed out by on-chain analytics firm Santiment.
While a favorable ruling or outcome in the Ripple vs SEC lawsuit would be a tremendous boost to XRP and Ripple’s business, it is important for investors to remain cautious and diversify their crypto holdings. One high-risk-high-reward investment strategy to consider is participating in crypto presales, wherein investors buy tokens of upstart crypto projects to help fund their development. Many of these projects feature solid teams backed by a vision of delivering innovative crypto applications.
The prospect of XRP reaching a 100x gain to a market cap of $2.7 trillion in the near future may be overly optimistic, but it is not impossible. Should Bitcoin reach a similar market cap to gold (over $11 trillion) and Ripple’s business continue to grow as the world’s major financial institutions adopt its cross-border liquidity services, it’s feasible that XRP could become a multi-trillion dollar market cap coin. However, amid such optimism, it is essential for investors to maintain a level of skepticism and not rely solely on predictions.
Disclaimer: This analysis does not constitute financial advice. Investors are recommended to conduct thorough research and exercise caution when participating in crypto markets.
Source: Cryptonews
