XRP price experienced an explosive rally that has been fueled by speculation surrounding the high-stakes lawsuit
XRP price has soared by more than 40% over the past two days. With the most recent price uptick, XRP has become the best-performing cryptocurrency within the top 100 on CoinMakretCap over the past 24 hours. At the time of writing, XRP is changing hands at $0.4921.
XRP/USD 4-hour chart | Source: TradingView
XRP price explodes 40%; why?
The recent price rally is most likely related to Ripple and the U.S. Securities and Exchange Commission filing their motions for summary judgment. The market believes that the defendants could secure a favorable court ruling after a grueling legal battle that has lasted almost two years. The outcome of the high-stakes lawsuit will have major implications for the entire cryptocurrency industry.
The court approved the Chamber of Digital Commerce’s request to file an amicus brief. Earlier this week, it submitted a motion for leave to file the brief in the SEC v. Ripple case. CEO Perianne Boring claims that the high-stakes lawsuit presents an opportunity for the client to define the legal framework for the cryptocurrency industry. Boring believes that the resolution of this case will have a significant influence on the U.S. crypto sector. The head of the Chamber of Digital Commerce has stressed a need for “a clear and consistent” set of rules for the burgeoning industry.
Earlier this week, the defendants objected to the plaintiff’s suggestion that it might need more time if other amici curiae submit their briefs. Ripple claims it is a “transparent attempt” to delay the case.
According to Santiment, the largest XRP whales with balance sheets of 1 million to 10 million or more XRP have exhibited extremely interesting behavior over the past two years, primarily because of their multidirectional. Wallets holding between 1 million and 10 million XRP have been actively accumulating cryptocurrency since late 2020. In contrast, the top 330 addresses holding more than 10 million XRP have been actively reducing the size of their position to the point where their share of the total XRP supply is now at a historic low of 70.75%.
“The price ratio of XRP/ $BTC has hit a one-year high of 0.000025 on the continued optimism of a potential settlement of Ripple with the SEC. Active shark & whale addresses holding 1m to 10m XRP have been in an accumulation pattern since late 2020”, Santiment reported.
As Santiment notes, the bottom line is that with XRP up more than 60% since the beginning of the week, the most active whales that have been accumulating positions are benefiting.
At the same time, XRP set a one-year record against Bitcoin, reaching 0.000026 BTC for 1 XRP. While the entire crypto market is shaking amid extremely negative fundamentals and technical factors, XRP’s result stands out significantly. This price action is probably the imminent outcome of a legal battle between Ripple and the SEC that will decide XRP’s status. Recall that the regulator intends to recognize the token as a security, which is furiously argued by pro-XRP activists and lawyers.
Nevertheless, the question arises whether the incredible growth of XRP by such a large value in a week is the result of the actions of any people in the know or is entirely due to the speculation of ordinary enthusiasts and investors.
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