The cryptocurrency market has experienced upward and downward volatility, and XRP has been the focus of attention. On March 19, XRP saw an 11.32% rise after Ripple CEO Brad Garlinghouse announced that the U.S. Securities and Exchange Commission (SEC) had dropped the appeal against the company.
This news led to a sharp rise in interest in XRP, but this rally was short-lived, followed by a correction in the market the next day, as the price of XRP fell below $2.50. As a result, many investors sold their assets at the first sign of deterioration.
Vandell, market analyst and co-founder of Black Swan Capitalist, expects XRP to hit double-digit by the end of the year. While some investors rush to sell their holdings, Vandel encourages them to hold onto it, believing that the best is yet to come.
The bigger picture: Why would heavy selling be a huge mistake?
With Ripple and the US Securities and Exchange Commission (SEC) lawsuit coming to an end, and clearer regulations expected in the near future, now may be the perfect time to stick to XRP. While many investors sell with fear, the more patient await a significant rally.
Looking at November 2024, the price of Ripple saw a significant rise, rising from just 50 cents to a seven-year high of $3.40 by mid-January 2025. This 580% rise suggests that there is more than just speculation that moves the Ripple price.
The analyst expects Ripple to make a quantum leap, with some experts suggesting that prices could rise to $13 or $18. Currently, XRP is trading at around $2.40, which means that reaching $10 requires a 300% rise, and even a price rally will lead to massive gains.
Digital asset classification sparks controversy over XRP and RLUSD
The International Monetary Fund (IMF) has launched a new framework for the classification of digital assets, drawing global attention to the legal and financial status of tokens such as XRP. According to the International Monetary Fund, cryptocurrencies that do not carry associated obligations, such as Bitcoin, are classified as capital assets. At the same time, stablecoins with financial support fall into the category of financial instruments.
The guidelines define cross-border cryptocurrency transactions as capital account activities that involve the acquisition or sale of non-derivative assets. Ethereum Solana and protocol-based tokens operate similarly to stock assets if held by foreign entities. Market watchers and digital asset communities have shown particular interest in a specific item related to service tokens.
The IMF describes service codes as assets that come with a financial claim against a known counterparty, usually for access to goods or services. The XRP community expresses uncertainty about this particular item. David Schwartz, chief technology officer at Ripple, spoke about this concern, questioning whether any prominent digital asset matches this definition. According to his analysis, the IMF’s logic enables many existing tokens to become interchangeable.
Schwartz argues that Bitcoin and Ethereum should receive similar classifications if XRP qualifies as a service token, as it can be used to pay transaction fees. That interpretation weakened the reliability of the framework. The debate has intensified with Ripple’s recent announcement of RLUSD, a stablecoin poised to compete in a growing market valued at more than $2.8 trillion.
RLUSD’s Ripple Launch Raises Concerns about XRP’s Regulatory Role
Ripple’s entry into the stablecoin space through RLUSD adds a new dimension to the debate over XRP’s legal classification. Some voices in this area have speculated that RLUSD may be more compatible with the IMF’s definition of a service code than the XRP itself.
Market Overview and Price Forecasts
The US government has revealed plans to create a cryptocurrency reserve, with Ripple set to be a key component. This triggered an immediate bullish reaction, pushing it to multi-month highs.
After the announcement, Ripple saw a rapid price increase, jumping from $2.00 to over $2.93 in a single trading session before seeing some decline.
This increase means that it saw a 29% increase in the last trading session. The 12-hour price chart reflects this massive volatility, showing increased buying pressure and increasing volume.
With XRP holding support above the bull market support range, the probability of continued bullish momentum remains high. The breakout indicated in the chart of Steph Is Crypto suggests that XRP may enter a parabolic phase, similar to previous bull market cycles. If market conditions remain favorable, prices are expected to rise further.
At the time of writing, XRP is trading at $2.7, representing a 30% increase over the past 24 hours. Bullish factors bring XRP closer to breaking out the resistance at $2.95. If this level breaks, XRP could rise to $3.00, paving the way for further gains. The analyst attributes this rally to a combination of macroeconomic factors, evolving regulations, and the potential of Ripple technology.
If the price continues to break through resistance, XRP could test its all-time high (ATH) at $3.40. Breaking this level will allow a new ATH level to be set, indicating further altcoin growth. Such a development could attract more investors and possibly lead to new records for XRP.
