XRP’s price has been on a literal rollercoaster throughout the past 90 days. As this quarter is coming to an end, it’s perhaps interesting to look at some of the major considerations for XRP in the final three months of the year.
If there’s one thing that we know, it’s that XRP tends to be a momentum-driven coin, and under the right circumstances, its price could explode very quickly.
Addressing the Elephant in the Room
First things first, it’s clear that the legal battle between the United States Securities and Exchange Commission and Ripple Labs could be a decisive factor when it comes to XRP’s price performance.
The outcome of the lawsuit is likely to cause a stir in the market, and we’ve already seen its potential impact.
Back in July, the presiding judge, Analisa Torres, ruled partially in favor of Ripple. She determined that secondary sales of XRP do not constitute an investment contract. Essentially, this signifies that the court doesn’t think XRP sold on the open market is to be considered a security.
This was perceived as massively bullish news for the cryptocurrency, and you can see its impact on the price:
The XRP price doubled in a day, more or less. And this was only a partial victory for Ripple. The outcome of the lawsuit is yet to take place as the SEC has since appealed the judge’s decision as the case is headed to trial.
Market Sentiment is also Critical for the XRP Price
As mentioned above, XRP tends to be a momentum coin. Therefore, the market sentiment is particularly important for it.
In all fairness, this is probably true for most cryptocurrencies, with the exception of Bitcoin, which, in most cases, is the trendsetter. That said, the market sentiment has clearly been on the low for the past three months, as seen in the following Fear and Greed Index chart:
But if there’s one thing that’s for sure in the cryptocurrency market, it’s that trends change quickly. The industry is known for its volatility and explosive nature.
Should the market turn bullish, XRP’s price might also be impacted positively.
Ripple’s Development Efforts
Beyond market speculation, XRP’s value is largely attributed to Ripple’s development efforts in terms of the work they put into making the XRP Ledger a better blockchain network.
That said, there’s an upcoming upgrade that will integrate two very important features to the XRP Ledger – the automated market maker and the clawback feature.
Some have already speculated on whether or not this upgrade will have an impact on the price. The CTO of Ripple, David Schwartz, also chipped, saying that it may have a potential short-term impact, but, in the long term, it should trim down the volatility.
XRP Adoption Across the Board
The more use cases there are for XRP, the more the demand for it will increase. this could also have a positive impact on the price in the following months.
XRP, widely used for settling cross-border payments as per its main use case, has also been leveraged by some businesses in a clever way to solve the so-called “Friday Night” problem. It’s a situation where someone wants to purchase a service but is unable to pay for it on a Friday night because banks don’t work. The private charter rental company TapJets is a prime example.
All of the above has also given grounds for massive speculation, with some already predicting wild XRP prices to the tune of $500 per token.
It’s interesting to see how the market will shape up in the coming months and if XRP will be in a position of strength.
Meanwhile, we’ve also prepared a video on how XRP might perform throughout the next bull market according to everyone’s favorite chatbot – ChatGPT: