Crypto analyst CryptoCondom (@crypto_condom), who was previously a vocal critic of XRP, has done a U-turn and is now endorsing the cryptoasset as a potential investment for his 82,400 followers. The change has its roots in his analysis of Ripple’s lawsuit with the U.S. Securities and Exchange Commission (SEC) and its implications for XRP’s price.
4 Reasons to Be Bullish About XRP
@crypto_condom who never imagined investing in XRP, revealed that his change in perspective was prompted by what he sees as an outgrowth of the recent sell-off, triggered by delays in the Ripple-SEC settlement. His analysis suggests that the resolution of that lawsuit could catalyze a series of transformative events.
“I never thought in my life that I would want to own/long XRP… but here we are. I think there has been a sell-off recently due to the delay in settlement. In my opinion, Ripple settlement will happen FAST [propel 4 reasons to be bullish on XRP]”- noted the analyst.
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 operations at full capacity in the United States.[It will] “allow the company to operate in the US again,” says @crypto_condom.
Historically, despite Ripple securing over 31 money transfer licenses in various states, ongoing legal uncertainty has significantly hindered broader institutional adoption of XRP. In the past, Ripple CEO Brad Garlinghouse exposed that institutions like Bank of America are waiting for the lawsuit to be resolved. Additionally, Ripple and MoneyGram have parted ways due to the SEC lawsuit.
Second, @crypto_condom hints at a potential listing of XRP futures on leading US exchanges like Coinbase once the lawsuit is resolved. This would not only enhance XRP’s liquidity, but also its visibility and appeal to a broader range of institutional investors.
Moreover, this regulated futures market of significant size could pave the way for a US spot XRP ETF, according to the crypto analyst. “MAYBE this will allow him to get an ETF through a second-tier issuer (it has CFTC futures) at some point. As the huge success of US spot Bitcoin ETFs shows, this could mark a significant milestone in providing retail and institutional investors with a regulated vehicle to invest in XRP, thereby broadening its investor base.
Fourth, the prospect of an initial public offering (IPO) for Ripple also looms vast, depending on changes in the regulatory environment. @crypto_condom speculates that a potential victory for Donald Trump in the presidential election, who is seen as more favorable to the cryptocurrency industry, could create a regulatory climate favorable to such a move.
Ripple CEO Brad Garlinghouse has previously noted that an IPO would be impractical under the current regulatory environment, indicating that the company’s strategy could change drastically with changes at the federal level.
Price Target and Community Reactions
Despite his newfound support for XRP, @crypto_condom remains cautious about its price potential. In a heated exchange with his supporters, he tempered expectations, dismissing the possibility of XRP reaching $10 even in the most confident scenarios, though he admitted that a climb to almost $1 could be within reach.
This cautious optimism stands in contrast to more bullish predictions in the community. For example, a user named Nefarious boldly predicted that “6-year accumulation will burst and XRP will easily send $10+,” which @crypto_condom sharply rebutted. He responded, “errr… $10 is not a snowball’s chance in hell. Although it’s possible to get close to $1.”
At the time of going to press, XRP was priced at $0.5994.
Featured image created with DALL E, chart from TradingView.com
