Think It's Too Late to Buy XRP? Here's the Biggest Reason There's Still Time.

XRP (CRYPTO: XRP) has been the best-performing major cryptocurrency over the last six months. Its token price has risen 430% across the stretch, and the cryptocurrency now has a total market capitalization of $183 billion.

XRP's recent rally was kicked off by Donald Trump's victory last November. It stems partly from expectations that the new president will help reduce regulations and promote growth for the crypto space.

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The other big component in XRP's Trump-related rally is the expectation that some long-running legal issues surrounding the token will be cleared up. Now that the Securities and Exchange Commission (SEC) is poised to be led by Trump pick Mark Uyeda, there seems to be a good chance that the agency could drop its securities violations case against Ripple Labs, the company that created XRP.

But while XRP has already seen big gains in conjunction with these catalysts, there's another potential development on the horizon that could push its token price far higher.

Trump could make a move that powers more big gains for XRP

During his presidential campaign, Trump said he wanted to create a U.S. strategic Bitcoin reserve. Subsequent reports have confirmed that he's still looking to create a crypto reserve, which would function similarly to the existing gold reserve. But the new president is now reportedly thinking about significantly expanding the project scope to include other tokens.

Trump is said to favor U.S.-originated cryptocurrencies including XRP and Solana for the government reserve project. If XRP were to wind up being part of a U.S. crypto reserve initiative, there's a very good chance that the development would push its token price well above current levels.

For starters, the country would first need to buy the token -- which would increase demand and create positive pressure for its price. Being part of the cryptocurrency reserve system could also be great for XRP's brand and a beneficial long-term pricing catalyst.

Should you invest $1,000 in XRP right now?

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Solana, and XRP. The Motley Fool has a disclosure policy.