Ripple’s XRP token has faced significant headwinds since the US SEC accused the fintech company of selling unregistered securities. The lawsuit is a major reason why XRP has struggled to gain momentum, even during bull markets.
Despite a bearish market sentiment, XRP has made significant gains over the last few days. The asset is currently green across the board, rallying 10.4% in the weekly charts, 38.4% in the 14-day charts, and 23% over the previous month.
Also Read: Ripple Back Up as Bullish Momentum Continues XRPs 24% Rally
While XRP has struggled to hit new highs due to the SEC’s lawsuit, there is a possibility that the asset will hit $1 in 20224.
Top 3 reasons why Ripple’s XRP could hit $1 in 2024
According to CEO Brad Garlinghouse, the SEC vs. Ripple lawsuit will conclude “very soon.” Garlinghouse is not the only person with this sentiment. According to attorney Fred Rispoli, the lawsuit could come to an end by July 31, 2024.
Also Read: Ripple CEO Says SEC Lawsuit to End ‘Soon’ as XRP Surges
Also Read: Bloomberg Predicts Ripple XRP-SEC Case To End Soon: Here’s When
Another reason that could trigger a rally for Ripple’s XRP is the possibility of an interest rate cut. Traders anticipate a rate cut sometime this year after inflation figures in the US began showing signs of cooling. An interest rate cut could give investors the confidence to pour funds into risky assets, such as cryptocurrencies.
Analysts have also highlighted that XRP’s year-to-date returns have trailed other assets. They have also shed light on the fact that XRP is considerably underbought. A bull market could lead to significant funds flowing into the eighth-largest crypto by market cap.
The three reasons mentioned above could push Ripple’s XRP upwards of $1. Hitting $1 from current prices will entail a rally of about 66.6%.