Attorney Bill Morgan has outlined key factors that could drive the cryptocurrency XRP to surpass its previous all-time high (ATH) of $3.4 within the year. Despite the digital asset’s lackluster performance amid a broader market rally, Morgan’s insights shed light on possible catalysts for a significant price movement.
XRP legal clarity and market confidence
One of the primary elements identified by Morgan is the necessity for XRP to achieve legal clarity. This clarity seemed to have been partially achieved in July 2023, when Judge Analisa Torres ruled that XRP is not a security. This decision, according to Morgan, is pivotal and remains unaffected by any potential appeals from the Securities and Exchange Commission (SEC). The legal expert believes that this foundational clarity is crucial for restoring investor confidence in XRP.
Furthermore, the resolution of the ongoing lawsuit between the SEC and Ripple, the company closely associated with XRP, is seen as another vital step toward the cryptocurrency’s recovery. The legal battle, initiated in December 2020, has significantly hampered XRP’s market performance, preventing it from participating in the 2021 bull run that saw many cryptocurrencies reach new heights.
Resumption of trading and Ripple’s sales
Another significant factor highlighted is the resumption of XRP trading on United States-based exchanges. This development followed Judge Torres’s declaration that Ripple’s programmatic sales on digital exchanges did not constitute security transactions. The reinstatement of XRP on major platforms is anticipated to boost liquidity and investor interest, potentially propelling the asset toward new highs.
Additionally, the market is keenly awaiting clarification on whether Ripple can continue selling XRP to U.S.-based On-Demand Liquidity (ODL) clients. This aspect, while not immediately crucial for a price surge, is essential for unlocking the full potential of the previously mentioned factors.
Morgan posits that even without the final resolution of the SEC lawsuit and clarity on Ripple’s sales to ODL clients, XRP has the potential to exceed its ATH. However, he emphasizes that these factors are instrumental in unleashing the “deferred massive impacts” of legal clarity and the resumption of trading on U.S. exchanges.
The ongoing legal proceedings and regulatory uncertainties have cast a shadow over XRP’s market performance. However, Morgan’s analysis offers a beacon of hope for investors looking for signs of a turnaround. With the cryptocurrency market being highly sensitive to regulatory news and legal developments, the eventual resolution of these issues could indeed catalyze XRP’s growth.
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