• 2 Possible Reasons for Ripple (XRP) Price Explosion of 50% in a Week

  • XRP is by far the best-performing cryptocurrency over the last seven days. It’s up more than 50% and trading at roughly $0.50, leaving all other big cryptocurrencies in the dust.

    The entire community has speculated on probable causes, therefore we look at two of them that could have caused the spike.

    The SEC-Ripple Case

    The lawsuit between the US Securities and Exchange Commission and Ripple is being closely watched by the whole industry, as the outcome might have major ramifications for other projects as well.

    However, Ripple’s legal counsel has taken a steadfast stance that XRP is not a security and has even gone so far as to criticize the Commission, claiming a lack of a “investment contract” affording investors rights.

    As previously reported, Ripple claimed that the SEC’s “untethered posture” may convert the sale of all forms of ordinary assets – including commodities such as gold, diamonds, soybeans, and so on – into securities transactions. The company’s attorney also stated that Congress has not granted the watchdog such jurisdiction.

    Surprisingly, both Ripple Labs and the Securities and Exchange Commission filed separate motions asking the Southern District Court of New York to rule on whether the XRP transaction violated securities regulations.

    This means that, if brought forward, the matter will be dropped and may be resolved within the next six months.

    This has certainly had a significant positive impact on the price of XRP, and it looks like the market is anticipating a favorable outcome.

    XRP is amassed by whales.

    According to data from the famous crypto site Santiment, huge XRP addresses have been in accumulation mode for quite some time.

    As a result, the price of XRP vs BTC has reached a one-year high of 0.000025 BTC. The analytics resource also appears to believe that the main reason for this is the SEC and Ripple’s persistent confidence about a potential settlement.

    Since late 2020, active shark and whale addresses holding 1m to 10m XRP have been in an accumulating pattern.

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