Emily Walker
Investors appear to be taking profits following a recent surge in XRP prices. Analyst TheXRPguy has provided seven compelling reasons for those holding XRP to consider waiting before selling, indicating that further price increases may be on the horizon.
Analyst Encourages Holding XRP Amidst Potential Price Rallies
In a recent X post, TheXRPguy emphasized that additional XRP price rallies may be forthcoming. He outlined seven key factors for market participants to keep in mind before deciding to sell their holdings. The first factor is the upcoming launch of RLUSD, a dollar-pegged stablecoin anticipated to debut on the XRP Ledger (XRPL), coinciding with Ripple’s progress towards gaining approval in New York.
The launch of RLUSD is expected to significantly enhance liquidity within the XRP ecosystem, positively impacting its price. The second event highlighted by TheXRPguy is the inauguration of Trump on January 20, which he believes could yield a favorable environment for cryptocurrencies, including XRP, due to Trump’s pro-crypto stance.
Another critical point is the expected departure of Gary Gensler from the US Securities and Exchange Commission (SEC) on the same day as Trump’s inauguration. Gensler’s resignation is seen as beneficial for the XRP price, given his role in the legal challenges against Ripple that have previously weighed down the cryptocurrency’s value.
Furthermore, TheXRPguy anticipates that the Ripple lawsuit will reach a conclusion following Gensler’s exit, which he considers the fourth significant event to await before selling off XRP. With Trump appointing Paul Atkins, a pro-crypto advocate, as the next SEC Chair, there is a favorable outlook for XRP’s future.
Three Additional Reasons to Hold onto XRP
Additionally, TheXRPguy noted three other factors to consider: the current altcoin season, a prospective partnership for Ripple, and the approval of an XRP ETF. According to Blockchain Center, the altcoin season is underway, which typically bodes well for XRP and suggests the potential for substantial price gains.
The analyst also speculates that Ripple is likely to team up with a prominent bank, which could enhance XRP’s usage in institutional payments, thereby driving its price upward. Furthermore, the anticipation of XRP ETF approvals, with applications filed by Bitwise, Canary Capital, 21Shares, and WisdomTree, could lead to a positive market reaction. With Atkins’ pro-crypto orientation, such approvals might come from the new administration, especially considering that XRP has been classified as a non-security by the courts.
As of the latest update, XRP is trading at approximately $2.39, reflecting a decline of over 9% in the past 24 hours, according to CoinMarketCap.