XRP is up by more than 10% in the week after Ripple CEO announced that the SEC would be dropping the SEC against the crypto network.
Let us explore how this and other developments have set XRP up for a breakout to a new all-time high.
On Thursday, March 20, XRP rallied and shot up by more than 8%, as much as 8%, in the week after Ripple’s CEO announced on the X platform that the SEC had dropped their case against Ripple.
He stated “I’m finally able to announce that this case has ended.
It’s over.” Note, however, that even if that were the case, possible confirmation from the SEC will likely be on hold until the Trump appointee for the chairmanship – Paul Atkins – is confirmed by the Senate.
There Were Signs
If you have been paying close attention to the crypto industry developments, you should have noticed a pattern that hinted at a possible end to the case.
It started with Trump’s campaign promise of making the United States the crypto capital of the world.
Upon his election he appointed a crypto-friendly SEC chair, acting Chair after Gary Gensler’s exit, and crypto and AI Czar.
The SEC acting chair then set up a unit dedicated to clearing the country’s crypto regulatory framework.
And even before it filed its report, the Coinbase case was dropped and the case against Binance was put on Hold.
But even more importantly, the President named XRP among the digital assets he would want to see included in the national Strategic Crypto Reserve.
It, therefore, shouldn’t be surprising if indeed the SEC has agreed to drop the appeal against XRP.
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Fundamentals Hint at a Possible XRP Breakout
In addition to the reserve and SEC case news, several other fundamentals are expected to trigger a breakout for XRP prices.
For Starters, derivative traders continue to drive up buy pressure for the altcoin ahead of the next options expiry date in March. 28.
According to Deribit, many XRP investors are buying ‘in the money’ call options, which means they expect XRP to be worth more a week from today.
Secondly, Ripple has committed to reducing XRP sales in the near future. You probably already know that Ripple Labs owns close to 42% of all the XRP coins in circulation.
The imbalanced tokenomics have seen institutional investors shy away from the altcoin as Ripple Labs has an unfair advantage over control of XRP prices.
The commitment may help draw in institutional investors who add to Ripple’s buy pressure.
Over the longer term, a recovering crypto market and approval of Ripple ETFs will play a key role in driving up XRP prices. We, nevertheless, remain bullish about XRP’s price and expect it to peak at around $4.41 by year-end.
