Crypto analyst CryptoCondom (@crypto_condom), who had previously been a vocal critic of XRP, has done a U-turn and is now endorsing the crypto asset as a potential investment to his 82,400 followers. This about-face is rooted in an analysis of Ripple’s lawsuit with the U.S. Securities and Exchange Commission (SEC) and its implications for the price of XRP.
4 Reasons to Be Bullish on XRP
@crypto_condom, who never imagined investing in XRP, disclosed that his change of perspective was prompted by what he sees as an excess in the recent sell-off, triggered by delays in the Ripple-SEC deal. His analysis suggests that the resolution of this lawsuit could catalyze a series of transformative developments.
“Never in my life did I think I would want to own/target any XRP… but here we are. I think it was oversold the other day due to the delay in settlement. In my opinion, the Ripple deal will QUICKLY (boost 4 reasons to be bullish on XRP),” the analyst noted.
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First, the conclusion of the lawsuit between Ripple and the SEC is expected to clarify the regulatory status of XRP, potentially allowing Ripple to resume full-capacity operations in the United States. “(This) will allow the company to operate in the U.S. again,” @crypto_condom stated.
Historically, despite Ripple securing over 31 million dollars transmitter licenses In several states, persistent legal uncertainty has significantly hindered broader institutional adoption of XRP. In the past, Ripple CEO Brad Garlinghouse revealed that institutions like Bank of America are waiting on the sidelines until the lawsuit is resolved. Additionally, Ripple and MoneyGram divided paths due to the SEC lawsuit.
Secondly, @crypto_condom points to the potential listing of XRP futures on major US exchanges such as Coinbase following the resolution of the lawsuit. This would not only increase XRP’s liquidity but also its visibility and attractiveness to a wider range of institutional investors.
Furthermore, this sizable regulated futures market could pave the way for a US-based spot XRP ETF, according to the crypto analyst. “TAYBE allows for an ETF someday through a tier-two issuer (has CFTC futures). As the Huge success of US spot Bitcoin ETFsThis could represent a significant milestone in providing institutional and retail investors with a regulated vehicle to invest in XRP, thereby broadening their investor base.
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Fourth, the prospect of a Ripple Initial Public Offering (IPO) also looms large, depending on a change in the regulatory environment. @crypto_condom speculates that a potential presidential victory by Donald Trump, who is seen as more supportive of the crypto industry, could create a regulatory climate conducive to such a move.
Ripple CEO Brad Garlinghouse has previously noted that an IPO under current regulatory conditions would be impractical, signaling that the company’s strategy could change dramatically with changes at the federal level.
Target Price and Community Reactions
Despite his newfound support for XRP, @crypto_condom remains cautious about its price potential. In a lively chat with his followers, he tempered expectations, ruling out the possibility of XRP hitting $10 even in the most optimistic scenarios, although he admitted that a rally to close to $1 could be within reach.
This cautious optimism contrasts with more optimistic projections within the community. For example, a user named Nefarious boldly predicted that “the 6-year accumulation will be interrupted and XRP will send over $10 easily,” a sentiment that @crypto_condom vehemently refuted. He responded: “errr… $10 is not a snowball’s chance in hell. Close to $1 is possible.”
At the time of writing, XRP was trading at $0.5994.
Featured image created with DALL·E, chart from TradingView.com