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- XRP’s price has recently dropped, but it may recover due to a stablecoin launch, possible ETF approvals, and a positive SEC case resolution.
- The RLUSD stablecoin could increase institutional involvement and strengthen XRP’s utility and appeal.
XRP has faced significant price challenges in recent weeks, experiencing a 3% decline to $2.33. However, several factors suggest the potential for recovery and growth in the coming months.
Ripple’s RLUSD Stablecoin Approval
Ripple’s USD stablecoin, RLUSD, has been approved by the New York State Department of Financial Services (NYDFS). Recently, Ripple CEO Brad Garlinghouse confirmed the news but did not unveil the exact time of the launch. Through institutional payments and cross-border transactions, RLUSD will enhance Ripple’s ecosystem.
Analysts believe that RLUSD will enhance the role of XRP as a bridge currency and maybe attract institutional investors. The addition of the stablecoin into Ripple’s structure may increase demand and strengthen the position of XRP in the payment industry.
Interest in XRP-Backed ETFs
There is increasing focus on the possibility of the launch of XRP-based ETFs. Some of the major asset management companies such as WisdomTree, 21Shares, and Bitwise have applied with the U.S. Securities and Exchange Commission (SEC). There are also speculations that even big players like BlackRock may join the bidding process.
The approval of an XRP ETF will thus open a bridge for institutional and retail investors to invest in the asset. Similar to Bitcoin ETFs, which have already garnered billions of dollars in investments, an XRP ETF could greatly expand the liquidity and usage of the asset. Analysts believe that such an outcome will lead to a significant increase in capital inflows and only contribute to the growth of XRP.
Additionally, the legal battle between Ripple and the SEC continues to be a major influence on the XRP price. There is a possibility of a shift towards resolution, and this may be tied to the change of guard in the US as well as the expected departure of the SEC Chairman Gary Gensler.
A favourable outcome might help determine whether or not XRP is a security and hence provide direction. This clarity is expected to increase investors’ confidence and encourage institutions to get involved, giving a strong background for price increases.
Analyst Predicts Strong Growth
Popular crypto analyst Steph has noted that XRP could go as high as $35 in the near future, with a target of 2025. In his view, the recent price rise on the monthly chart shows that XRP is bullish. He pointed out a 30% price increase and the successful break out of a key resistance level as evidence of strength.
According to Steph, XRP may increase by more than 1300% from its current value. He also urges investors to pay attention to price changes and take profits as prices rise.
Steph also pointed out that XRP was moving upwards against BTC, which had been declining since 2018. Since November, the price of XRP has appreciated against BTC, and the recent price action has been trading in a bullish flag pattern. With this, in case of a breakout through key resistance levels, XRP may outperform Bitcoin by as much as 78% and attract more investors.
