Reasons Why XRP Could Rebound: Should You Hold XRP Through 2024?

XRP, once a dominant player in the cryptocurrency space, has had a rocky journey over the past few years. Currently trading at around $0.57145, XRP is down approximately 10% for the year, while other major cryptocurrencies like Bitcoin have surged by 40% in 2024.

Despite its underperformance, XRP still holds potential, especially considering a few key developments that could lead to a turnaround in its fortunes. Here, we explore three compelling reasons why XRP could bounce back by the end of this year and beyond.

Should You Buy #XRP and Hold through 2024 and Beyond?

A long legal battle with the #SEC that hurt the value of XRP for more than three years just wrapped up in August.
The end of #legal and #regulatory uncertainty should open up growth opportunities for XRP in the U.S.
The… pic.twitter.com/HBLwACjGgr

— pebbleone (@TACITWR) September 16, 2024

A Favorable Legal and Regulatory Outlook

Ripple’s Legal Battle with the SEC Nears Its End

One of the biggest overhangs for XRP has been its protracted legal fight with the U.S. Securities and Exchange Commission (SEC), which has weighed heavily on investor sentiment.

However, after nearly four years of legal wrangling, Ripple Labs, the company behind XRP, seems to have cleared a significant hurdle in August 2024.

🚨 The Ripple case is over, and the SEC won’t appeal. Why? Because in the Binance case, the SEC has now acknowledged that crypto, by itself, is not a security. With this stance, they have no grounds to appeal the XRP ruling. It’s officially done and dusted!…

— WallStreetBulls (@w_thejazz) September 14, 2024

Ripple settled with the SEC, agreeing to pay $125 million in penalties for improperly selling XRP tokens to institutional investors. While this is a substantial sum, it’s far less than the $2 billion the SEC initially sought.

This legal uncertainty has been the main factor depressing XRP’s value over the past few years. Now that Ripple is likely free from future regulatory action, investors could view this as a green light to increase their exposure to XRP.

Without the cloud of regulatory ambiguity hanging over it, XRP could regain the confidence of both institutional and retail investors.

Regulatory Clarity May Attract New Investors

Regulatory uncertainty has kept XRP out of many exchanges and limited its liquidity in the U.S. market. With this case mostly resolved, we may see cryptocurrency exchanges relisting XRP, giving it more visibility and potentially boosting its price.

Additionally, with no more looming lawsuits, Ripple can focus on growing its U.S. operations, which have been stifled during the legal battle.

Emerging Growth Opportunities Abroad

Ripple’s International Expansion and Partnerships

Although Ripple has faced challenges in the U.S., it has been expanding its operations globally. Ripple’s blockchain technology is already being tested in eight different countries to facilitate central bank digital currencies (CBDCs), and this number could increase to 30 shortly.

While Ripple has kept a low profile in the U.S., the international market remains a strong growth driver, with partnerships being formed across Europe, Asia, and Latin America.

Just working on some stats and here are some free takeaways:

🕹️United States, Japan, and South Korea are strong markets for monetization via in-app purchases.

🕹️India, Brazil, and Indonesia offer high download volume, making them ideal for ad-supported or freemium models.…

— Sarah (@Sarah_Quirkimon) September 15, 2024

Moreover, Ripple is preparing to launch a new stablecoin, Ripple USD, that will be pegged to the U.S. dollar. Tether and USD Coin, which together account for a sizable portion of the $150 billion market, currently dominate the stablecoin space.

If Ripple USD can capture even a small fraction of this market, it could significantly boost demand for XRP and improve its liquidity. This presents a promising growth path for XRP in 2024 and beyond, as it positions itself to take advantage of stablecoin innovation.

Rebuilding U.S. Partnerships

With the end of Ripple’s legal troubles, former U.S. partners will likely revisit their relationships with the company. More importantly, the launch of Ripple USD could open new business opportunities domestically.

If Ripple successfully capitalizes on these new ventures, XRP could experience a major rebound in the coming years.

Potential for an XRP ETF: Institutional Investment Could Surge

Grayscale’s XRP Investment Trust

In a recent development, Grayscale, one of the largest digital asset investment firms, announced the launch of an XRP investment trust for accredited investors.

This trust allows institutional investors to gain exposure to XRP without having to directly purchase and store the cryptocurrency themselves. While this move is significant, there is more excitement around the possibility of a spot ETF for XRP.

Grayscale has already converted its Bitcoin and Ethereum investment trusts into spot ETFs, and many in the market speculate that XRP could follow the same path. A spot ETF would allow retail investors to easily invest in XRP through traditional brokerage accounts, significantly increasing demand for the cryptocurrency.

Will the SEC Approve an XRP ETF?

The primary obstacle to an XRP ETF is the SEC, which has had a contentious relationship with Ripple Labs. However, with the legal battle largely settled, there’s a chance that regulatory clarity could pave the way for an ETF. The approval of such a product could lead to substantial inflows of capital, driving up XRP’s price.

XRP Price Prediction for 2024

On the technical side, XRP is currently trading around $0.57145, showing slight upward momentum. However, the price is facing resistance near the 50-period moving average (MA) at $0.57446. The recent price action indicates that XRP has broken below a significant trendline and is struggling to regain its bullish momentum.

A successful break above this moving average could push the price toward the next resistance levels at $0.58406 and $0.59967.

• Key Resistance Levels: $0.57446, $0.58406, $0.59967
• Immediate Support: $0.55976, with further downside support at $0.54310

The Relative Strength Index (RSI) is currently at 44.01, indicating weak momentum. While the market is not yet overbought or oversold, traders should watch for a potential breakout above the moving average, which could signal renewed bullish momentum for XRP.

Conclusion: Is XRP Worth Holding Through 2024?

While XRP has faced numerous challenges in recent years, the resolution of its legal battle, coupled with new international opportunities and the potential for institutional adoption through an ETF, makes it a cryptocurrency worth watching.

🚨 Mark Your Calendars: October 7, 2024! 🚀
XRP could skyrocket to $9,761! Here's why:

Market Momentum: #XRP is gaining traction and showing bullish patterns 📈

Institutional Adoption: Major banks are adopting XRP for cross-border payments. 🏦

Partnerships & Demand Growing pic.twitter.com/JJ0i01c4TZ

— xaif.03 🇮🇳 (@xaif_03) September 13, 2024

XRP’s price did not rally as expected following the court ruling, which raises some questions about its near-term momentum. However, for investors willing to take a longer-term view, XRP could offer substantial upside if it capitalizes on its growth opportunities.