Investors in XRP are growing more confident about a potential price surge, thanks to the Federal Reserve’s interest rate cuts and an important update on the ongoing legal battle between Ripple and the Securities and Exchange Commission (SEC).
Ripple is urging unity within the cryptocurrency industry as regulations evolve, which is expected to benefit the company. XRP has become a favorite among investors, with indicators suggesting that a bullish breakout is on the horizon. The altcoin has faced price suppression in recent years due to its legal issues with the SEC. However, with legal experts predicting a resolution to the case soon, XRP investors are hopeful for a bullish breakout that could potentially lead to a retest of the token’s all-time high.
This positive outlook is further supported by expectations of an interest rate cut by the Federal Reserve in September. Such a move is anticipated to drive up XRP prices and have a positive impact on the broader cryptocurrency market.
The possibility of a rate cut gained traction following a drop in the ISM Manufacturing PMI from 49.2 to 48.7 in May. Consequently, the probability of the Federal Reserve maintaining unchanged interest rates decreased from 45.2% on May 31st to 38.4% by June 3rd, as indicated by data from the CME FedWatch Tool.
Furthermore, the cryptocurrency industry has shifted its support to the Republican party after Donald Trump, a prominent figure within the party, expressed his endorsement of the industry. Cryptocurrencies have taken center stage in the upcoming September elections, with a Republican victory expected to result in crypto-friendly regulations.
As previously reported, Ripple has donated $25 million to Fairshake, a Super Political Action Committee (Super PAC) that supports bipartisan Congressional candidates who are in favor of cryptocurrency innovation in the United States. Coinbase, the only publicly traded cryptocurrency exchange, has followed suit by matching Ripple’s $25 million donation.
These contributions demonstrate the industry’s commitment to influencing regulations in the country. Concerns have been raised in the past that an anti-crypto stance from the government could drive innovation away from the United States. However, the industry has shown its determination to continue growing within the country. The upcoming elections could play a significant role in shaping the future of the market.
The election outcome could also have implications for the ongoing Ripple v. SEC case. Experts believe that a Republican victory could lead to a change in leadership within the SEC, potentially resulting in the conclusion of the case. Some even speculate that a settlement may be reached before then as the agency seeks to save face.
In addition to these factors, other developments surrounding Ripple and the XRP Ledger and its ecosystem could contribute to increased demand and adoption of the coin. This includes the growing prominence of the central bank digital currency (CBDC) platform, which has garnered attention from nearly 20 central banks planning to launch their own tokens. The upcoming launch of the stablecoin RLUSD could also play a crucial role in the network’s growth.
Ripple’s CEO, Brad Garlinghouse, has expressed optimism about a potential initial public offering (IPO) for the company. However, Ripple insists that Gary Gensler be removed as SEC Chairman for the IPO to proceed.
Additionally, the approval of an XRP exchange-traded fund (ETF) could attract billions of dollars in investment and drive up prices.
As of now, XRP is trading at $0.5278 after experiencing a 1.3% surge in the past 24 hours. The altcoin has seen minimal changes in the past week, with experts noting that it is currently in a consolidation phase.
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