Regulation
6 Reasons Why XRP Price Will “Rise”: Crypto Expert
In a new YouTube videoCryptocurrency expert Zach Rector has outlined his bullish stance on XRP, providing six reasons why he believes it will catalyze a significant price increase for the cryptocurrency. Rector’s insights come at a crucial time for the cryptocurrency and Ripple.
#1 XRP Case Resolution
Zach Rector highlighted the imminent conclusion of a long-running lawsuit between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), which has been going on for over three and a half years. He said, “You should be ready for this because you saw what happened last year with Judge Torres’ ruling on XRP. We went through the roof and basically shut down all the exchanges.”
The potential resolution of this legal battle could be a determining factor in market dynamics, perhaps easing legal pressure and boosting investor confidence. Recall that when Judge Torres released the summary judgment On July 13th of last year, the XRP price rose by almost 100% in one day. Attorney Fred Rispoli recently expected that the SEC case could be concluded by the end of July.
#2 Liquidity on Demand in the United States
The resolution of the lawsuit could have huge implications for Ripple and its XRP-based business. The analyst also noted the planned launch of on-demand liquidity (ODL) services in the United States after the lawsuit is settled, as confirmed by Simon McGlothlin, CEO of Uphold.
The dean enthused: “Flip that switch, as they say, right?” This service, which uses XRP for transaction liquidity, could significantly improve utility and demand in one of the world’s largest markets.
#3 Introduction of the Ripple stablecoin
To further energize the ecosystem, Ripple plans to to introduce a stablecoin in Q3, as confirmed by Ripple CEO Brad Garlinghouse. “This will bring a whole new wave of liquidity to the XRP Ledger ecosystem,” Rector explained.
The introduction of a stablecoin could expand the use cases for XRP and decentralized finance (DeFi). The latter could improve demand and liquidity, thus strengthening the cryptocurrency’s market price.
#4 Anticipating Pro-Crypto Regulations
Rector also touched on the broader regulatory landscape in the United States, suggesting that upcoming cryptocurrency regulations could provide a boost to the industry. He noted, “XRP, along with Ripple’s compliance-first mentality, is perfectly positioned.”
Although the regulations may not materialize until next year, their potential to clarify legal positions could positively influence the price. If Donald Trump wins the US elections in November this year, experts assume that Gary Gensler will have to step down as SEC chairman. This could herald a wave of new crypto-friendly regulations and perhaps put an end to the “Operation Chokepoint 2.0”.
#5 Spot XRP ETFs Emergence
Pointing to the example of Europe, where XRP ETFs are already live, Rector predicts similar financial products will emerge in the United States. “We will see XRP ETFs. It’s inevitable. They’re already live in Europe. We’ll see them here in the United States and it’s not just one, I put a plural with an ‘s’ there because we’ll see baskets of ETFs that include XRP,” he said.
These ETFs will likely increase liquidity and provide a new channel for institutional and retail investment. In particular, Ripple CEO Garlinghouse shared in February a prediction that Spot XRP ETFs will likely launch in the U.S. at some point. “I think that makes sense. There will be more ETFs […] “It’s hard to predict when we’ll see them,” Garlinghouse noted.
#6 Favorable macroeconomic trends
Finally, Rector speculated on the impact of macroeconomic policies, such as further monetary expansion, on cryptocurrencies. He suggests that more money printing, regardless of the political administration in the United States, will undoubtedly benefit the price of cryptocurrency and the cryptocurrency market as a whole.
“Speaking of liquidity, no matter who gets elected, we expect more money printing. And so, this is the time to prepare. We expect XRP to make a move,” Rector concluded.
At press time, XRP was trading at $0.6272.
Featured image created with DALL·E, chart from TradingView.com