- XRP token has breached the $1 mark for the first time since November 2021
- Three reasons why XRP could surge to $5: 1) Alternative to the SWIFT system, 2) Settlement of the SEC vs Ripple lawsuit, 3) Lenient crypto regulations under Trump’s leadership
- XRP’s rally was triggered by Bitcoin hitting an all-time high of $99,645.39 on November 22, 2024
Ripple’s XRP token has breached the $1 mark for the first time since November 2021. The cryptocurrency has faced some challenges in recent years, but there are several reasons to believe its price could continue climbing to hit $5 or more. Let’s explore the key factors that could fuel a significant rally for XRP.
XRP’s Biggest Rally Since 2021
XRP recently saw its largest price surge since 2021, jumping over 30% in the past week. This rally came on the heels of Bitcoin hitting $99,000 and triggering gains across the crypto market. XRP is now up over 130% since November 2022 as momentum builds.
Reason 1: Potential Alternative to SWIFT
One major factor that could drive up XRP is its potential to serve as an alternative to the long-dominant SWIFT system for international transactions. Ripple has touted its blockchain-based network as a faster and cheaper option compared to SWIFT’s infrastructure. If Ripple gains meaningful adoption, it would be a game-changer for XRP demand.
Reason 2: Resolution of the SEC Lawsuit
The SEC’s lawsuit against Ripple has been an overhang on XRP for years. The case alleged that XRP should be considered an unregistered security. But Ripple settled with the SEC in 2022, agreeing to pay a $125 million fine. With this major lawsuit now resolved, the roadblock to XRP’s growth has been removed.
Reason 3: Possible Supportive Regulations Under Trump
Many in crypto anticipate more industry-friendly regulations under President Donald Trump. Trump could appoint a “crypto czar” to oversee policy. More lenient oversight combined with Trump’s pro-crypto stance could accelerate adoption and send XRP soaring.
Conclusion
XRP has already posted impressive gains in 2022, but several key factors suggest there is room to run to $5 and beyond. If Ripple sees progress on SWIFT alternatives and supportive policies take shape, investors could flock to XRP – fueling the next leg up. The coming months will be critical in determining how high XRP can fly.
