Ripple's XRP has made strong predictions about a price rally of up to 50% in 2024. Several factors contribute to this positive outlook. These include changes in rules and regulations, a shift in market sentiment, and strong performance in the cryptocurrency space. This article explores the reasons why XRP is likely to see price growth in the coming year.
A milestone moment for XRP from Ripple when the case filed by the SEC was about to happen in 2020. Its price and market standing were adversely impacted by the case. The turning point was realized in mid-2023 when a judge declared that in retail transactions XRP cannot be qualified as a security.
This ruling has given investors a lot of confidence, and it has opened a precedent for the regulatory head to clear affairs regarding XRP. Analysts have estimated that if the appeal process in 2024 goes in favour, then XRP can go up to $2.50, which translates to an increase of 50%.
The 2024 US presidential elections open up a pro-crypto shift. Donald Trump's probable win will finally take shape into an embracing, crypto-friendly SEC which will result in the generation of higher institutional trust, higher adoption, and, consequently, accelerated price growth intensification for XRP.
Hope that a new government would mean a friendlier regulatory environment for cryptocurrencies after the latest election win by Donald Trump has witnessed investment staking a historical high. In addition, most analysts were optimistic that the administration was embracing pro-crypto policies with more cooperation rather than enforcement aggression. As such, these are opportunities for a regulatory overhaul Ripple Chief Executive Brad Garlinghouse was advocating, and this is a good sign to change market sentiment.
Investments in companies like Ripple were expected to increase once clearer regulatory frameworks were in place with Trump at the helm, furthering the expansion efforts of companies, and through that, the demand for XRP, and even more so through improved ODL solutions. Institutional interest in digital assets was also forecasted to pick up.
Ripple whales have now tokenized 390 million XRP tokens. This could potentially turn the tide of price, said Binance Square in a report on November 2024. Activations of accounts within the XRP Ledger have soared to a seven-month high as the figure rose from below 10,000 at the beginning of October to more than 24,411 in November, levels not seen since March 2024. Increased network activity may indicate renewed investor interest during uncertain market conditions.
From the Santiment data, whales in the 1 million to 1 billion XRP count increased the amount staked by almost $198.9 million worth of XRP since late October. The strategic accumulation has been a strong base for a potential bullish reversal.
An important role is attributed to the market sentiment when discussing what determines prices in the cryptocurrency markets. XRP XRP currently sits under a positive sentiment driven by several factors:
Market Trend: XRP and other altcoins were partially seeing some form of recovery from the recent increase in Bitcoin. This recent rise in Bitcoin has always proved constructive for altcoins; hence, it is bringing up the sentiments of the investors as a whole.
Technical Indicators: XRP, analysts say may be constructing some kind of bullish technical pattern and considerable movement might take place if some resistance levels break down. XRP recently entered the "golden cross" of its four-hour charts, which is a rather famous technical indicator that heralds quite some history in actually being bullish often.
Political Influence: Hope comes in the form of recent US elections, and pro-crypto candidates have emerged, especially in Donald Trump. Campaign promises from Donald Trump, like removing SEC Chairman Gary Gensler, may help the Ripple and XRP market come into a more favourable regulatory environment.
ETF Speculation: The XRP Spot Exchange-Traded Funds do carry the potential to be approved, thereby making it more accessible for XRP investors even though they may not necessarily hold the token themselves, increasing demand.
Ecosystem Development at Ripple: Ripple still has a developing stable coin called RLUSD, so after its launch, the utility will come to the network and perhaps demand the token.
Institutional Interest: "Whales" of XRP make big moves by transferring large amounts. This speaks well of the fact that institutions are looking deeper into it. A series of transfers worth over half a billion XRP stands as an example of growing confidence among major investors in it
History Trends: As per history, the price actions of XRP have been huge after all the previous elections. Analysts believe similar trends will be seen after the 2024 elections if pro-crypto policies come through.
This has set the stage for a probable 50% price appreciation in 2024 under the positive factors combined. Regulatory certainty that would be piled on top by the court decision coming in 2023 and the probable better results to be delivered could relieve investors of the lost confidence.
Pro-crypto policy and regulatory moves that would likely come in now that Donald Trump won an election can play in XRP's favour. The whale accumulation signal is an institutional interest while the technical indicators "golden cross" and history to date indicate a bull run. This amalgamation presents a strong possibility for a good year for XRP.