Ripple’s XRP had quite a few bullish weeks earlier this month. The asset breached the $3 mark for the first time in seven years. XRP has struggled to gain momentum since its all-time high in January 2018.
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XRP Glows Red
Despite the recent upswing, Ripple’s XRP token has faced a significant correction over the last few days. The asset’s price is down 0.9% in the daily charts, 2.1% in the weekly charts, and 7.4% in the 14-day charts. The asset has maintained some gains in the monthly and yearly charts, rallying 44.6% and 505%, respectively.
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XRP’s dip could be due to macroeconomic factors. The US dollar is gaining strength and investors are flocking to safer assets. The Federal Reserve has paused interest rate hikes but has not announced a rate cut yet. The Fed also plans on just two interest rate cuts this year instead of three.
3 Reasons Why Ripple’s XRP Could Hit $5
1. ETF Approval
Grayscale recently applied for a spot XRP ETF. The financial institution joins Bitwise and WisdomTree, among others, to have an XRP ETF filing.
There is a high probability that the SEC will approve an XRP ETF this year. The Trump administration is quite bullish on crypto and we may see many bullish developments for XRP this year.
2. A Win In The SEC Lawsuit
The SEC vs. Ripple lawsuit was one significant barrier to XRP’s price over the last few years. The fintech company received a partial victory last year.
With a pro-crypto administration in place in the US, there is a possibility that the fintech company will come out on top.
3. More Adoption
Also Read: XRP’s Big Leap: ETF Approval & $423K AMM Liquidity Surge—What’s Next?
If Ripple wins its lawsuit and an XRP ETF is approved, we may witness a surge in the asset’s adoption. More people may feel comfortable investing in the asset. The development may lead to a significant price surge for XRP.
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