XRP Price Volatility: 20% Drop, 20% Rebound, Lawsuit Resolution, Institutional Interest, and Regulatory Clarity

Edo Farina, the founder of Alpha Lion Academy, has advised investors to maintain their holdings in XRP, suggesting that the cryptocurrency is poised for a significant rally. This recommendation comes amidst recent price fluctuations that have caused some investors to lose confidence in the asset. XRP experienced a drop from $2 to around $1.6 on April 7, followed by a rebound to $2, where it has remained for the past week.

Despite these price swings, Farina has provided seven compelling reasons for investors to continue holding XRP. One of the primary reasons is the impending conclusion of the SEC v. Ripple lawsuit, which has significantly impacted XRP's performance over the past few years. The parties involved have reached an agreement to resolve the multi-year lawsuit, with the SEC agreeing to accept a reduced fine of $50 million and discard the permanent injunction imposed on Ripple’s business. The court has been asked to pause the litigation for 60 days to facilitate this resolution. If the lawsuit concludes, it could end the regulatory uncertainty surrounding XRP, potentially attracting more investors to the coin.

Another reason Farina encourages holding XRP is the growing institutional interest in the cryptocurrency. Several asset managers have filed to launch spot XRP ETFs in the United States, which aim to provide a regulated way for institutional and retail investors to gain exposure to XRP’s price. The potential approval of these ETFs could channel more inflows into the XRP ecosystem.

Farina also notes that XRP’s true market price has not yet been established, suggesting that the cryptocurrency is trading below its true value due to regulatory challenges and other factors. With the lawsuit expected to wrap up soon and more capital entering the ecosystem through ETFs, XRP might establish its true value.

Additionally, Farina anticipates regulatory clarity for the broader crypto market, which could motivate more investors to adopt top assets like XRP. The U.S. has taken key steps in providing clear and sensible regulations for the crypto market, including clarifying that meme coins and stablecoins like Ripple USD (RLUSD) are not securities. The country is also close to having a stablecoin regulation passed by Congress, with the proposal awaiting a full vote from lawmakers.

Farina also highlights the pro-crypto stance of U.S. President Donald Trump as further justification for holding XRP. A government that favors crypto could imply lighter regulation or the potential adoption of the emerging asset at the federal level. The U.S. is already pushing to establish clearer and sensible regulations and plans to adopt cryptos like XRP as part of its reserve.

Farina asserts that Ripple’s RLUSD is just getting started, meaning that the stablecoin is primed for more growth. Major prime broker Hidden Road disclosed plans to utilize RLUSD as a collateral asset for its brokerage services, potentially using it to clear some portion of its $3 trillion annual trade. As the stablecoin registers high volumes, it could drive more demand for XRP as collateral and transaction fees.

Lastly, Farina highlights Ripple’s upcoming partnerships as another justification for holding XRP. He suggests that Ripple is close to announcing new partnerships that could drive demand for XRP. Partnerships centered around XRP being used for cross-border settlements could potentially drive the coin’s demand to greater heights.

In summary, Farina's analysis points to the potential for greater demand for XRP, which could push its price to unprecedented levels. Therefore, he advised investors to continue holding XRP in order to participate in the upcoming rally.