Market players appear to be cashing in on profits, given the recent correction in XRP prices following its parabolic surge. Analyst TheXRPguy has identified seven reasons why individuals who haven’t locked in profits yet should refrain from selling their tokens, indicating that further price surges are imminent.
Analyst Outlines Reasons to Hold XRP as Future Rallies Are Anticipated
In a recent post on X, TheXRPguy indicated that additional price rallies for XRP are on the horizon. He highlighted seven factors that traders should consider before liquidating their assets. The first factor he noted was the impending launch of RLUSD. This dollar-pegged stablecoin is expected to be deployed on the XRP Ledger (XRPL) soon, coinciding with Ripple’s approaching regulatory approval in New York.
The introduction of RLUSD could significantly enhance the liquidity in XRP’s ecosystem. The second event mentioned by TheXRPguy is the inauguration of Trump, scheduled for January 20 next year. Trump’s return to the White House is viewed positively for cryptocurrencies such as XRP due to his supportive views on the industry.
The third event noted by the analyst is the planned exit of Gary Gensler from the U.S. Securities and Exchange Commission (SEC). Coincidentally, Gensler’s resignation will coincide with Trump’s inauguration date. His departure could bode well for XRP, especially considering that he was at the forefront of the legal action against Ripple, which had previously cast a shadow over the cryptocurrency.
TheXRPguy anticipates that the Ripple case may conclude following Gensler’s exit, citing it as the fourth reason why market participants should hold their positions. There is a strong possibility that the litigation could wrap up as Donald Trump has put forward pro-crypto Paul Atkins as the prospective chair for the SEC.
Three Additional Reasons to Delay Selling XRP
TheXRPguy outlined the altcoin season, a potential partnership for Ripple, and the approval of an XRP ETF as factors to consider before divesting from XRP holdings. Data from Blockchain Center indicates that the altcoin season has commenced, which is favorable for XRP as it could realize notable gains during this timeframe.
Additionally, the analyst speculates that Ripple will eventually collaborate with a major banking institution to enhance its payment services. Such a partnership would be bullish for XRP, paving the way for broader institutional adoption. The potential approval of an XRP ETF was also mentioned, which could signify a positive outlook for the cryptocurrency.
Various firms, including Bitwise, Canary Capital, 21Shares, and WisdomTree have sought approval for a Spot XRP ETF. With Atkins holding a favorable view of cryptocurrencies, this approval might materialize under the forthcoming administration. Furthermore, a recent court ruling has determined that XRP does not qualify as a security.
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