6 Reasons Why The XRP Price ‘Will Pump’: Crypto Pundit
In a new YouTube video, crypto pundit Zach Rector outlined his bullish stance on XRP, providing six reasons he believes will catalyze a significant price increase for the cryptocurrency. Rector’s insights come at a pivotal time for the crypto asset and Ripple.
#1 Resolution Of The XRP Lawsuit
Zach Rector pointed to the imminent conclusion of a prolonged lawsuit between Ripple Labs and the US Securities and Exchange Commission (SEC), which has extended over three and a half years. He highlighted, “You better be ready for this one because you saw what happened last year with Judge Torres ruling on XRP. We shot up and basically shut down all of the exchanges.”
The potential resolution of this legal battle could be a major driver for market dynamics, possibly relieving legal pressures and boosting investor confidence. To recall, when Judge Torres released the summary judgment on July 13 last year, the XRP price shot up by almost 100% within one day. Lawyer Fred Rispoli recently predicted that the SEC lawsuit could end by the end of July.
#2 On-Demand Liquidity In The US
The resolution of the lawsuit could have massive implications for Ripple and its XRP-based business. The analyst also noted the expected launch of on-demand liquidity (ODL) services in the US following the end of the lawsuit, as confirmed by Simon McGlothlin, CEO of Uphold.
Rector enthused, “Flip that switch, as they say, right?” This service, which uses XRP for transaction liquidity, could significantly enhance the utility and demand in one of the world’s largest markets.
#3 Introduction Of The Ripple Stablecoin
Further energizing the ecosystem, Ripple plans to introduce a stablecoin in Q3, as confirmed by Ripple CEO Brad Garlinghouse. “This is going to bring a whole new wave of liquidity into the XRP Ledger ecosystem,” Rector explained.
The introduction of a stablecoin could expand use cases for XRP and decentralized finance (DeFi). The latter could improve the demand and liquidity, thus bolstering the market price of the crypto asset.
#4 Anticipation Of Pro-Crypto Regulations
Rector also touched upon the broader regulatory landscape in the US, suggesting that forthcoming crypto regulations might boost the sector. He remarked, “XRP, along with Ripple’s compliance-first mindset, is perfectly positioned.”
Although regulations may not materialize until next year, their potential to clarify legal standings could positively influence the price. If Donald Trump wins the US election in November this year, experts assume that Gary Gensler will have to vacate his seat as SEC chairman. This could herald a wave of new crypto-friendly regulation and possibly end the Biden administration’s “Operation Chokepoint 2.0”.
#5 Emergence Of Spot XRP ETFs
Pointing to Europe’s example, where XRP ETFs are already operational, Rector predicts similar financial products will emerge in the US. “We are going to see XRP ETFs. It is inevitable. They are already live in Europe. We’re going to see them here in the United States and it’s not just one, I put a plural with an ‘s’ there because we’re going to see baskets of ETFs that include XRP,” he said.
These ETFs will likely enhance liquidity and provide a new channel for institutional and retail investment. Notably, Ripple CEO Garlinghouse shared in February a prediction that Spot XRP ETFs are likely to launch in the US at some point. “I think it only makes sense. There will be other ETFs […] When we will see them is hard to predict,” Garlinghouse remarked.
#6 Favorable Macroeconomic Trends
Lastly, Rector speculated on the impact of macroeconomic policies, such as further monetary expansion, on cryptocurrencies. He suggests that increased money printing, regardless of the political administration in the US, will undoubtedly benefit the crypto asset’s price and the broader crypto market.
“Speaking of liquidity, no matter who gets elected, we’re expecting more money printing. And so, this is the time to get prepared. We’re expecting XRP to make a move,” Rector concluded.
At press time, XRP traded at $0.6272.
Featured image created with DALL·E, chart from TradingView.com
