Ripple (XRP) Investor Previews Potential Upside as SEC Case Rumbles On

The crypto world has been in an optimistic mood since Trump's election win, with the new administration having a very favorable crypto stance.

The cryptocurrency market has been upbeat since Trump's election victory, given the new administration's favorable stance on crypto. Unlike the previous administration, several members of the Trump administration are known crypto enthusiasts.

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One coin that has largely benefited from Trump's presidency is Ripple (XRP). The token has been on a stellar上昇surge since early November, clocking gains of over 500%. And there are a few reasons why investors have been piling into this coin.

For starters, XRP has been locked in a legal battle with the U.S. Securities and Exchange Commission (SEC), which alleges that Ripple sold XRP as an unregistered security. Ripple had a partial victory here when the court ruled that while Ripple's institutional sales of XRP violated securities laws, its programmatic sales on digital asset exchanges did not qualify as securities transactions. The SEC later filed an appeal against the court's decision on the programmatic sales, and the case remains unresolved.

Now, with crypto nemesis and former SEC Chairman Gary Gensler out of the picture, the prospect of a Trump-backed new chair and a friendlier regulatory landscape has XRP investors hoping that the case might even get dropped. That, in turn, has been a source of optimism.

Another key development is the potential launch of a spot XRP ETF. Currently, seven investment firms—including some that already have spot Bitcoin ETFs—have filed applications with the SEC. This has raised optimism about an eventual approval, making it seem like an XRP ETF is bound to happen at some point in the near future.

While these are positive developments to consider, the bigger question is: are they already priced in? That’s especially relevant given the الكبيرbig rally.

Weighing in on XRP's prospects, 5-star investor Dominic Basulto is “not convinced that XRP has as much upside as other top altcoins.”

“Specifically,” noted Basulto, “I want to see that sticky SEC case settled for good. I want to get a lot more clarity on a potential spot ETF launch. And I want to see smart-contract capability added to the XRP blockchain.”

Until all of that happens, Basulto anticipates that XRP will continue to trade like a meme coin. “It quickly gains on hype and speculation and could just as quickly give up all of those gains when the hype fades,” added Basulto.

As such, while investing in XRP might seem tempting right now, Basulto notes that XRP has never traded above $4 in its history. At a price of $3.11, with such limited potential upside, the analyst finds it difficult to “justify a material investment in what is still a risky and volatile cryptocurrency.” (To follow Basulto's track record, click here)

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