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XRP Price Skyrockets by 30% – Here is Why

XRP Price Skyrockets by 30% – Here is Why

XRP has shown a significant price surge, which could indicate that the ongoing legal dispute between Ripple and the Securities and Exchange Commission (SEC) may soon end.

Ripple’s supporters are optimistic that the company will emerge victorious. This sentiment has caused the value of its native cryptocurrency, XRP, to increase significantly in the past 24 hours.

SEC allegations

The cause of this optimism is the possibility that the two-year legal battle may soon end. The SEC claims that XRP is a security and that two of Ripple’s executives violated the Securities Act of 1933’s registration provisions.

Ripple, which does not directly issue the token, maintains that XRP does not meet the criteria for securities as defined by the Howey Test and should not be treated as an investment contract.

During an interview with CNBC at the World Economic Forum in January, Ripple CEO Brad Garlinghouse expressed hope that the conflict would be resolved in the first half of 2023.

The outcome of the case could have significant implications for the cryptocurrency industry. If the judge rules in favor of the SEC, it could potentially categorize many other cryptocurrencies as securities. The judge could also decide to send the case to a jury trial or limit the scope of the trial.

READ MORE: Bitcoin: Is the Market Overbought or Just Getting Started?

Recently, Ripple team members have cited a Supreme Court ruling that they believe supports their case and have filed documents in court accordingly. Notable individuals in the cryptocurrency industry, such as Ryan Selkis, the CEO of Messari, have increasingly voiced their support for Ripple as the legal decision draws nearer.

XRP price

At the time of writing, XRP is trading at $0.49 after an incredible 30% increase in the past 24 hours. The token’s daily trading volume exceeds $3.4 billion, while the current market cap is over $25 billion.

The technical analysis from TradingView sheds light on the optimistic turnaround for the cryptocurrency as the sentiment is becoming more bullish. The summary of the indicators shows a “strong buy” opportunity with 17 signals. Oscillators point at “buy” with 3 signals, while the moving averages show “strong buy” at 14.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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