Highlights
- XRP price could rally to as high as $10 if the US government used funds from the SEC vs. Ripple lawsuit to buy XRP tokens.
- The lawsuit is nearing its end, with analysts predicting that it could be settled by mid-April.
- The end of the lawsuit and endorsement by the US government will also push Ripple closer towards an IPO< igniting another parabolic rally.
The US government may use the $125M settlement from the SEC vs. Ripple lawsuit to buy XRP for the digital assets stockpile. With the lawsuit expected to end as soon as February and the US Congress already debating the Reserve and Stockpile bill, how high will XRP price go? Let’s explore.
How High Will XRP Price Rally if US Government Buys Ripple
The SEC vs. Ripple lawsuit is nearing its end according to crypto reporter Eleanor Terrett. She noted that the lawsuit was being wrapped up and could be over soon with a possible $125M settlement.
Meanwhile, last week, a White House statement outlined several ways that it would obtain altcoins for the digital assets stockpile. This includes a “civil money penalty imposed by any agency without further executive or legislative action.”
If the US government uses these funds to buy Ripple, XRP will be the first token that the US government holds in its digital assets stockpile. This is bound to boost investor confidence and the Ripple network adoption, leading to a massive XRP price rally past its all-time high of $3.40.
Grok AI notes that this purchase would ignite a major bullish breakout, potentially leading to XRP price doubling in price. It stated,
“The news will ignite a full bullish breakout, doubling the price to $4.62, akin to the 2023 ruling response, as traders anticipate broader adoption.”
At the same time, DeepSeek AI notes that,
“If the price increases by 50% due to the initial purchase and another 100% due to trader reaction, the price could rise to $6.93.”
The end of the SEC vs. Ripple lawsuit and endorsement by the US government will also boost Ripple’s IPO plans. This IPO would ignite yet another rally, making it likely for the XRP price to hit $10 and attain an over $580 billion market cap to emerge the largest altcoin.
XRP Analysis Amid Bullish Breakout
XRP price is showing signs of bullish momentum, after breaking out of the upper boundary of its descending parallel channel. Ripple price today trades at $2.34 with a 2% drop in 24 hours. Buyers stepped in around the $2 support level, and the altcoin now seems prime for an upward momentum. The RSI is trending higher and the AO indicator also shows that bulls are gaining strength.
If Ripple price rebounds and breaks out above $2.50 after making a decisive close above the upper trendline of the descending channel, the altcoin could rally again to the key Fibonacci levels of 78.6% and 123.6% Fibonacci levels of $3 and $3.37, respectively.
However, if sellers step in, XRP price could drop again to retest the $2 support level before another upswing. Traders should watch out for a sustained momentum in the RSI to confirm the bullish trend.
While the short-term trend shows mixed sentiment around the XRP price, this altcoin could register a massive gain if the end of the SEC vs. Ripple lawsuit leads to a $125M purchase by the US government.
Frequently Asked Questions (FAQs)
1. How high would XRP price go if the US government buys Ripple?
2. Will the US government use Ripple's $125M settlement to buy XRP?
3. What is XRP's short-term target?
- Coinbase Urges Court to Sanction SEC Over Missing Gensler Texts
- Breaking: $9T BlackRock Plans To Tokenize ETFs Following Bitcoin ETF Success
- Bitcoin’s Bull Cycle May Peak This Month, Peter Brandt Says
- Ethereum Whales Buy $204M ETH Amid Rebound Above $4,400
- SOL Rises as Nasdaq-listed Forward Completes $1.65B Raise For Solana Treasury
- SHIB Price Forecast as LEASH V2 Rollout Expands Cross-Chain — Is a 200% Rally Ahead?
- BNB Price Forecast as Binance–Franklin Templeton Deal Strengthens Path to $1,500
- Pi Network Price Wyckoff Theory Signals a Surge as One Whale Keeps Buying
- ETH Price Prediction As Bitmine and SharpLink Continue ETH Buying Spree- Analyst Predicts $7K Next
- AVAX Price Prediction as Avalanche $1B Treasury Gains Momentum – Is $55 in Sight?